Installment vs. Cash Purchase Calculator: Analyzes the cost-benefit of different payment methods.
The Installment vs. Cash Purchase Calculator is an essential tool for consumers and financial planners looking to maximize the value of their money. It allows you to analyze the cost-benefit of different payment methods, comparing the embedded interest in installments with discounts offered for cash payments. By entering the product’s value, the installment interest rate, and the percentage discount for immediate payment, the calculator reveals which option is financially more advantageous, helping to avoid unnecessary expenses. For you, Carlos, who values optimized decisions and intelligent resource management, this tool is a practical guide to ensure that every purchase is made in the most economical way possible, freeing up capital for your investments and goals.
Installments vs Cash — Calculator
Core Calculator
How to use & Glossary
- Insert the Full price of the item.
- Choose if the seller offers a discount for cash and type percent or fixed value.
- Enter number of installments and the monthly interest if known (or the total you will pay).
- Optionally fill the monthly return you would get if you invested the cash instead of spending it.
- Results update automatically. Use Print to save a PDF of the analysis.
- Full price
- Original price before any discount.
- Discount
- Reduction applied for payment in cash. Can be percent (%) or fixed value.
- Monthly interest rate
- Percentage charged per month on financed balance (nominal).
- Installment
- Monthly payment amount for a financed purchase.
- Opportunity cost (monthly return)
- Expected monthly return if you keep the cash invested instead of paying upfront.
