Offer Reader
What does that payment plan really cost?
Type the offer from the store, the card or the lease-to-own agreement. You get the four Truth in Lending numbers, an estimated APR, and how far above the cash price it all comes to.
Worked example
Lease-to-own or rent-to-own
Annual percentage rate
The cost of your credit as a yearly rate. (estimated)
176.30%
Finance charge
The dollar amount the credit will cost you.
$970.00
Amount financed
The amount of credit provided to you.
$850.00
Total of payments
The amount you will have paid when you have made all scheduled payments.
$1,820.00
Cash price today$899.00
Everything you would pay signing + fees + payments$1,869.00
More than the cash price$970.00 (2.08 × the cash price)
Saving $35.00 every week instead would reach the cash price after 26 payments; the plan runs 52 payments (about 12 months).
An estimate from the numbers typed, by the actuarial method of Regulation Z Appendix J for equal payment periods. If a lender gives you a Truth in Lending disclosure, its APR is the one that counts; a first payment period longer or shorter than the rest moves the APR a little.