See the total cost and interest of paying in installments.
Installments spread a financed amount into equal monthly payments with interest, inflating total cost above the sticker price. The add-on interest makes installment buying costlier than paying cash, which is why the total interest paid matters.
Installment Cost
Monthly payment = financed x r x (1+r)^n / ((1+r)^n - 1)
Monthly payment = financed x r x (1+r)^n / ((1+r)^n - 1) Installments spread a financed amount into equal monthly payments with interest, inflating total cost above the sticker price.
The add-on interest makes installment buying costlier than paying cash, which is why the total interest paid matters.
This calculator takes 4 inputs: Item price, Down payment, Number of installments, Annual interest rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.