Work out instalment plan cost instantly with clear inputs, formula shown and shareable results.
Retail instalment plans quote a monthly figure rather than a rate. Solving for the rate that equates the financed amount with the instalment stream — an internal rate of return — reveals the credit cost hidden in the offer.
Implied rate
Financed = Σ instalment/(1+r)^t; APR = 12r
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.
Because the plan gives cash flows, not a rate. The IRR is the only rate consistent with those payments.
Sometimes the interest is built into a higher sticker price, so compare against the best cash price you can negotiate.