See How Much Money We Can Save You!
Free Cost of Credit Calculator
If you pay off your credit balance late, you’ll be paying extra!
Figure out how much your purchases actually cost based on the cost of credit using our easy calculator!
If you’d like to calculate this yourself, apply this math formula:
Discount %/(100-Discount %) x (360/Allowed payment days – Discount days)
Here’s an example:
A creditor offers a rate of 2/15 net, 40 payment terms. This means the creditor will allow a 2% discount if paid within 15 days, or a regular payment in 40 days.
Here’s the math on how to determine the percent cost of credit for this example:
= 2% /(100%-2%) x (360/(40 – 15))
= 2% / (98%) x (360/25)
= .0204 x 14.4
= 29.4% Cost of credit
If that sounds overwhelming, we’re with you—use our easy calculator!
If you have questions about your debt situation or are behind on your monthly debt payments, give one of our Certified Credit Counselors a call today at 1-800-500-6489!