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Financial cost of the input's payment term

See how much interest the credit price includes and whether buying on credit pays off compared to your cost of capital.

Pre-sizing and estimating tool: the results do not replace a design, calculation, or report signed by a qualified professional, nor verification against the applicable standards.

Preliminary estimateRevision 12/11/2026
Prices for the same product
Term and opportunity cost

Your opportunity cost is what the money would earn if it stayed invested. If it is higher than the implicit rate, the term is worth it.

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—Implied rate of the term
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Implied rate by term

Rate built into the credit price for terms of 30 to 180 days; the dashed line is your opportunity cost.

Tap the chart to see the values.

What if the data changes?

Drag the controls to simulate data different from what you entered (from 30% less to 30% more) and watch the result change instantly.

Tap the chart to see the values.

Implied rate by term and credit markup

Monthly rate built into the credit price for each term and each markup over the cash price. The highlighted row is your term.

Step by step with your numbers

The calculation done in steps, with the values you entered.

    The calculation memo gathers this page's inputs, results, equations, assumptions, and references, with fields for project, responsible person, and review. The full report also includes the charts and interpretations, in color. In the print window, choose Save as PDF.

    How to use

    Enter the cash price and the installment price of the same product, the term in days, and your monthly opportunity cost. The calculator shows the implicit rate of the term and whether paying in installments makes sense.

    Worked example

    Fertilizer at R$ 3,000/t cash or R$ 3,150/t in 90 days, with an opportunity cost of 1% per month.

    Surcharge = 5%. Rate = (3,150 ÷ 3,000)^(30 ÷ 90) − 1 = 1.64% per month (about 21.6% per year). Since 1.64% is higher than 1%, paying cash is cheaper.

    Common mistakes

    • Comparing only the percentage surcharge, without considering the term.
    • Forgetting that the opportunity cost depends on what you actually earn from the money.

    Method, assumptions, and references

    Equations used

    Implied monthly rate = (Credit price ÷ Cash price)^(30 ÷ term in days) − 1
    Annual rate = (1 + monthly rate)^12 − 1

    Assumptions and limits

    • Cash and credit prices for the same product, on the same date and with the same delivery terms.
    • Compound interest over the term entered; no discount for early payment, no fine, and no application cost.
    • Your opportunity cost is the rate you would earn by investing the money you did not spend upfront.

    Standards and technical documents

    • Concept of implicit rate in credit purchases: basic financial mathematics (compound interest).

    Frequently asked questions

    What is implicit rate?

    It is the interest rate hidden in the gap between the cash price and the credit price. You do not see the interest written down, but it exists in that difference.

    How to compare with my cost?

    Compare the implicit rate with the return you would earn by investing the cash amount. If the implicit rate is lower, paying on credit is cheaper.

    Why does the annual rate come out so high?

    Because the rate compounds. A rate of 2% per month becomes about 27% per year.

    Does the supplier's payment term enter the calculation?

    Yes, by the number of days. Also check whether there is a discount for early payment, because it changes the calculation.