Installment Cost
See the total cost and interest of paying in installments.
About Installment Cost
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.
Formula
Installment Cost
Monthly payment = financed x r x (1+r)^n / ((1+r)^n - 1)
- financed
- Price minus the down payment
Worked example
With the default values below, Installment Cost returns Total Cost of $1,283.10. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Item price
- 1,200
- Down payment
- 200
- Number of installmentsminimum 1
- 12
- Annual interest rateaccepts 0–100 %
- 15 %
Results
- Total Cost
- $1,283.10
- Monthly Payment
- $90.26
- Interest Paid
- $83.10
Step by step
- 1Values used
- 2Installment Cost
- 3Total Cost= 1,283.10
- 4Monthly Payment= 90.26
- 5Interest Paid= 83.10
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or fees or charges 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.
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 is Installment Cost calculated?
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.
Why does Installment Cost matter?
The add-on interest makes installment buying costlier than paying cash, which is why the total interest paid matters.
What values do I need to enter?
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.