How the comparison works
Money today is worth more than money later, because it can earn interest. The calculator brings each installment back to today’s value using what your savings earn, and compares the total with the cash price.
Example
A $1,000 item sold as 10 payments of $100, or $900 if paid upfront. With savings earning 4% a year, the payments are worth about $981.91 today, so paying upfront saves about $81.91. The plan hides an interest rate of about 1.96% a month.
Frequently asked questions
What about buy now, pay later apps?
The math is the same. Watch for late fees, which can make a “free” plan very expensive.
See also
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.