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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".

How will you pay it off?

Issuers differ. Check your statement; this is an estimate.

Your numbers never leave your browser. Saved data stays on this device only.

The price tag says

$1,200

Paid this way, it really costs

$2,333

The price: $1,200 Interest: $1,133

Interest you pay
$1,133
94% on top of the price
Time to pay it off
7 years 4 months
first payment $34.00
If you paid cash
$1,200
the price, with no interest

What if you paid it off faster?

The same purchase at 22% APR, paid off in a set number of months.

Paid off inMonthly paymentInterestTotal 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

$1,200$600$0Today2 yrs4 yrs6 yrs
  • Minimum payments: 7 years 4 months

Balance after each month, starting from $1,200 at 22% APR. No other purchases are assumed.

How we calculate this
Interest is charged monthly at the APR divided by 12, and each month's payment comes off the balance. Real statements use a daily rate, so your numbers may differ by a few dollars. Promotional 0% offers, deferred interest, fees and other purchases are not included.

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.

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