Cash vs Installments Calculator
Compare a cash price with discounted monthly payments using an entered opportunity-cost rate.
Your result
FINANCIALEnter your values and select calculate.
On this page How it works & practical examples
How to use the Cash vs Installments Calculator
Use the actual installment amount and all upfront payments, then enter a rate representing your opportunity-cost assumption. Payments are discounted from the end of each month, so timing matters rather than just adding the nominal total.
The calculation
Worked example
At a zero discount rate, $100 upfront plus ten $100 payments totals $1,100, so a $1,000 cash price has $100 lower present cost.
Assumptions and limits
No omitted fees, penalties, tax differences or credit risk are modeled. The discount rate is an assumption, not a guaranteed investment return. At zero rate, present and nominal payment totals coincide.
Common questions
Can a larger nominal total have lower present value?
Yes, at a sufficiently high discount assumption. That does not remove the obligation to make the payments.
Does this calculate loan APR?
No. It compares the supplied cash flows at your chosen discount rate.