About

Financial transparency is the cornerstone of a healthy purpose-driven economy. Traditional bank calculators often obscure the true cost of credit behind complex APR terminologies. This tool is inspired by the "fair price" philosophy, designed to protect consumers from predatory lending by explicitly visualizing the difference between the cash price and the total amount paid over time.

Whether you are splitting the cost of a television or managing startup expenses, accurate forecasting is essential. This calculator supports both standard amortization (with interest r) and zero-interest "fair" models, providing a clear breakdown of how your monthly budget is affected.

Formulas

For interest-bearing plans, the monthly payment A is calculated using the standard amortization formula:

P ⋅ r ⋅ 1 + rⁿ1 + rⁿ − 1

Where P is the principal amount, r is the monthly interest rate (Annual Rate / 12), and n is the total number of payments. For 0% plans, the formula simplifies to P / n.

Reference Data

Loan Type	Typical APR (%)	Notes
Fair / BNPL (Short Term)	0.00	Pay in 3 or 4. Late fees may apply.
Credit Union Personal	5.00 - 10.00	Community-focused, lower rates.
Bank Personal Loan	8.00 - 15.00	Standard rates, good credit required.
Credit Card (Standard)	18.00 - 24.00	High revolving interest. Avoid for long term.
Store Credit Card	25.00 - 30.00	Often predatory. High penalty rates.
Payday / Fast Cash	300.00+	Extremely predatory. Avoid at all costs.

Frequently Asked Questions

The fair price concept implies that the sum of all installments should equal the cash price of the product (0% interest). Any amount paid over the cash price is essentially the "cost of money" or interest, which this tool highlights.

Bank calculators often emphasize the "Monthly Payment" to make it look affordable, hiding the total interest paid. This tool prioritizes the "Total Paid" vs "Cash Price" comparison to show you the true cost of the loan.

Not always. Some "Buy Now Pay Later" services charge late fees or processing fees. Always read the fine print. This calculator assumes a pure split of the principal.

Generally, rates above 25-30% APR are considered predatory as they trap borrowers in debt cycles. Payday loans can reach 400%+.