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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.
Rate built into the credit price for terms of 30 to 180 days; the dashed line is your opportunity cost.
Drag the controls to simulate data different from what you entered (from 30% less to 30% more) and watch the result change instantly.
Monthly rate built into the credit price for each term and each markup over the cash price. The highlighted row is your term.
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.
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.
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.
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.
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.
Because the rate compounds. A rate of 2% per month becomes about 27% per year.
Yes, by the number of days. Also check whether there is a discount for early payment, because it changes the calculation.
Important notice: the Agrocalcs tools make estimates and preliminary sizing based on the data entered and on published engineering methods. They do not replace a design, a calculation report or a report signed by a qualified professional (CREA/ART), nor verification against the applicable technical standards and legislation, such as the Regulatory Standards of the Ministry of Labor. Material and fuel properties vary: check with the manufacturer or with analyses of your process before deciding. By using the site, you agree to the Terms of Use.
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