Installment Profitability Calculator

Make smarter payment decisions by analyzing the real cost of installments after accounting for inflation and investment opportunities.

⚙️ Parameters
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💵 Payment Details
Present Value Over Time
How It Works

This calculator helps you decide whether paying in installments is financially beneficial by considering two key factors:

1. Inflation Effect

Money loses value over time due to inflation. Paying later means you're paying with "cheaper" money. The calculator discounts future payments to their present value using the inflation rate.

2. Investment Opportunity Cost

If you pay in installments, you can invest the upfront amount you saved. The calculator compares:

  • Without Investment: Simple inflation-adjusted present value
  • With Investment: Assumes you invest the savings and earn returns monthly

Decision Guide

  • Profitable: Total present value of installments is less than the upfront price - installments win!
  • Not Profitable: You'd pay more by choosing installments - pay upfront if possible