True cost of a purchase calculator
The price on the tag is not what you pay when the purchase goes on a card and stays there. Enter a price and see what it adds up to.
What you would put on the card: the price plus any sales tax.
Find it on your statement under "Interest charge calculation".
Issuers differ. Check your statement; this is an estimate.
Your numbers never leave your browser. Saved data stays on this device only.
True cost of a purchase
$1,200 at 22% APR, minimum payments only. Estimates only.
The price tag says
$1,200
Paid this way, it really costs
$2,333
The price: $1,200 Interest: $1,133
What if you paid it off faster?
The same purchase at 22% APR, paid off in a set number of months.
| Paid off in | Monthly payment | Interest | Total paid |
|---|---|---|---|
| 6 months | $213.03 | $78 | $1,278 |
| 1 year | $112.32 | $148 | $1,348 |
| 2 years | $62.26 | $294 | $1,494 |
| 3 years | $45.83 | $450 | $1,650 |
What you still owe over time
- Minimum payments: 7 years 4 months
Balance after each month, starting from $1,200 at 22% APR. No other purchases are assumed.
Why the same purchase costs more
When you pay a card in full, the purchase costs its price. When you carry the balance, you pay interest on whatever is left each month, so the longer it takes, the more the purchase costs.
Minimum payments are set low, so most of each payment goes to interest and the balance falls slowly. That is why a small purchase can take years to clear and cost a large share of its price again in interest.
How to read the table
The table shows the same purchase paid off in a set number of months. A shorter term means a larger monthly payment and much less interest. Pick the row that fits your budget, and notice how fast the interest grows as the term stretches out.
What this calculator leaves out
Promotional 0% offers, deferred-interest deals ("no interest if paid in full"), fees and sales tax are not included. Deferred-interest offers can charge interest back to the purchase date if a balance is left when the offer ends, so read the terms closely and look at the total you would pay, not only the monthly amount.