Work out buy now pay later cost instantly with clear inputs, formula shown and shareable results.
Buy-now-pay-later splits a purchase into equal instalments with no interest if paid on time. The cost sits entirely in late fees, which annualise into a high effective rate because the borrowing period is only a few weeks.
BNPL cost
Instalment = purchase / k; Effective APR = fees/purchase × 52/weeks × 100
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
Only if every instalment lands on time. One missed payment can cost more than a month of card interest on the same amount.
Increasingly yes, and missed instalments can be reported like any other default.