Add every payment
Start with the cash price, deposit, number of installments, installment amount and mandatory fees. A hypothetical 2,000,000 IQD cash purchase with a 500,000 deposit and twelve payments of 140,000 costs 2,180,000 IQD in total before additional fees. The difference from cash is 180,000 IQD.
That difference is a total cost comparison. It is not automatically an annual interest rate or APR. Timing and the amount financed matter when converting costs into a rate.
Understand which model you are using
Our loan calculator models a fixed interest rate applied to a declining balance with equal monthly payments. A retailer may instead quote a fixed installment price without describing the charge as interest. Do not force a different agreement into the calculator and assume the answer is exact.
Questions for the seller
- What is the complete cash price for the same item?
- Which deposit and fees are mandatory?
- What happens if a payment is late?
- Is early settlement possible, and does it reduce the remaining charge?
- Are insurance, delivery or service costs included in either price?
Keep a copy of the quoted schedule and compare the same product specification. A lower installment can simply mean a longer term. Look at both the monthly burden and total paid before judging the offer.