Cash vs Credit Cost
Free Cash vs Credit Cost calculator with clear step-by-step results.
About Cash vs Credit Cost
Financing on a card adds interest on top of the purchase price over the repayment period.
Formula
Formula
Total with card = amortised payment × months
Worked example
With the default values below, Cash vs Credit Cost returns Total Cost on Card of $1,065.14. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Purchase priceminimum 0 $
- 1,000 $
- Credit card APRaccepts 0–40
- 22
- Months to pay offminimum 1
- 6
Results
- Total Cost on Card
- $1,065.14
- Cash Price
- $1,000.00
- Extra Cost of Using Card
- $65.14
- Effective Annual Cost
- 22.00%
Step by step
- 1Values used
- 2Formula
- 3Total Cost on Card= $1,065.14
- 4Cash Price= $1,000.00
- 5Extra Cost of Using Card= $65.14
- 6Effective Annual Cost= 22.00
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
Financing on a card adds interest on top of the purchase price over the repayment period.
Why does this matter?
Pay in full each month to avoid interest entirely.