You're looking at something you want to buy, and the store offers financing. But before you sign anything, you need to know: what will this actually cost me?

This calculator answers that question. Enter the purchase price, your down payment, the interest rate, and how long you'll take to pay—and you'll see exactly what you're committing to. Your monthly payment, the total interest you'll pay, and the real price of that item once financing is factored in.

Whether you're replacing a refrigerator that died at the worst possible time or finally upgrading your living room furniture, these numbers help you decide if financing makes sense—or if you're better off waiting and saving.

Step 1: Enter the Product Value This is the full price of what you're buying—the number on the price tag before any down payment. If sales tax will be rolled into your financing (which is common), include that too.

Step 2: Add Your Down Payment How much are you paying upfront? This could be cash, a trade-in, or store credit. Financing the whole thing with nothing down? Just enter zero—no judgment, plenty of people do.

Step 3: Enter the Interest Rate Use the APR from your financing offer. And yes, there's a wide range out there. Store credit cards often charge 24-29%. Personal loans might offer 8-15% if your credit is decent. Promotional offers sometimes go as low as 0%—though there's usually a catch we'll get to later.

Step 4: Choose Your Loan Term How many years until this thing is paid off? Most product financing runs anywhere from 6 months to 5 years. Shorter means higher monthly payments but less interest. Longer means easier monthly payments but more interest. We'll dig into that trade-off below.

Step 5: Look at What You're Actually Paying The calculator shows four numbers. The most important one? Total payment. That's what this purchase really costs when you're done.

Four numbers show up when you run the calculator. Here's what each one actually tells you:

Loan Amount Product price minus your down payment. This is what you're borrowing—the number that interest gets charged on. Put down $500 on a $2,500 couch, and your loan amount is $2,000.

Monthly Payment What you'll pay every month until it's done. This number stays fixed, which makes budgeting easier. But here's the thing—make sure this fits comfortably in your budget, not just barely. Life has a way of throwing unexpected expenses at you.

Total Interest This is the cost of borrowing. It's money that goes to the lender, not toward the thing you bought. On a $2,000 loan at 12% for two years, you'll pay roughly $260 in interest. That's $260 you wouldn't spend if you paid cash today.

Total Payment Loan amount plus interest. This is the real price of your purchase with financing. A $2,500 item might cost you $2,760 by the time you make that last payment. Seeing this number is often the wake-up call that helps people make smarter decisions.

Your monthly payment comes from a standard amortization formula. Here's the short version:

Monthly Payment = Loan Amount × [Rate × (1 + Rate)^Months] / [(1 + Rate)^Months - 1]

If that looks like alphabet soup, don't worry—that's why calculators exist. But understanding the concept helps: each payment covers some interest (the cost of borrowing) and some principal (actually paying down what you owe). Early payments are mostly interest; later payments are mostly principal.

Let's run a real example:

You're financing $2,000 at 9.99% APR for 24 months.

• Your monthly payment: $92.07
• After 24 payments, you've paid: $2,209.68
• Interest paid: $209.68

So you're paying an extra $209 to turn a $2,000 expense into $92 monthly payments. Is that worth it? Depends entirely on your situation. If $2,000 upfront would drain your emergency fund, spreading it out might be the smarter move even with the interest cost.

"Put more down to save money" is advice you'll hear constantly. And it's true—mathematically. But real life isn't just math.

Here's what the numbers show on a $3,000 purchase at 9.99% APR over 24 months:

Going from $0 down to $600 down saves you $63 in interest. That's real money. But it's also $600 you no longer have in your checking account.

Here's the question worth asking: what would that $600 do for you otherwise? If it's sitting in savings earning nothing, putting it toward the down payment makes sense. If it's your emergency fund and this purchase would empty it, keeping cash available might matter more than saving $63.

I've seen people stretch to make a bigger down payment, then have their car break down the next month with no cash to cover repairs. The $63 they "saved" cost them a lot more in stress and credit card interest.

There's no universally right answer. Just the one that fits your actual life.

I'll be honest—longer loan terms are tempting. The monthly payment looks so much more manageable. But let me show you what that actually costs.

Here's a $2,500 purchase at 11.99% APR:

That 36-month option looks great—$83 a month is easy to fit in almost any budget. But you're paying $492 in interest instead of $164. That's an extra $328 for the exact same item.

Think of it this way: at 36 months, you're paying almost $500 extra to have lower monthly payments. Is three years of easier payments worth $500 to you? For some people, yes. For others, that's a hard no once they see the actual number.

My suggestion: pick the shortest term where the payment doesn't stress you out. Not the shortest term you could technically afford—the shortest one that leaves room for the unexpected. Because something unexpected always comes up.

Interest rates for product financing are all over the map. Here's a rough guide to help you know what you're looking at:

Here's my honest take: rates above 20% are rarely worth it. At that point, a two-year loan means you're paying close to the item's value again in interest alone. A $1,500 purchase at 24% over 36 months costs you $2,106. You're basically buying it one and a half times.

If you're being offered rates that high, it's worth pausing to ask: Do I need this now, or can I wait and save? Could I get a better rate somewhere else? Would a credit union personal loan be cheaper?

Context still matters though. A 15% rate on a $1,200 washing machine when your current one just flooded your basement? Probably reasonable—you need it now. The same 15% rate on a $2,000 TV you could wait six months to buy? That's harder to justify.

So should you finance that purchase? Like most money questions, the honest answer is: it depends.

Financing usually makes sense when:

You need something essential and can't wait. Your refrigerator dies on a Sunday night with $200 worth of groceries inside. You need a replacement by Monday, not in three months when you've saved up. That's exactly the situation financing exists for.

You qualify for a genuinely low rate. Under 10%—especially 0% promotional offers—means the cost of financing is minimal. Keeping your cash available for emergencies while paying $50-100 extra in interest over two years can be a reasonable trade.

The monthly payment fits easily in your budget. Not "I can make it work if nothing goes wrong." Actually easily. With room to spare.

Think twice about financing when:

The interest rate is above 15%. You're paying a meaningful premium for the item. Run the numbers and look at that total payment—then decide if it's still worth it.

You're financing a want, not a need. That 75-inch TV is tempting, but if you could wait four months and pay cash, you'd save the interest and the monthly payment stress. Financing makes sense for needs and emergencies. For wants, saving up is almost always the better move.

You're already carrying other debt. Adding another monthly payment when you're already juggling credit cards or other loans makes everything harder. The financing offer will still be there once you've paid down existing balances.

The 0% financing trap—read this carefully:

Promotional 0% offers can be excellent deals. But many come with a catch called "deferred interest."

Here's how it works: if you don't pay the full balance before the promotional period ends, you don't just start paying interest on what's left. You owe interest on the original purchase amount from day one—often at 24.99% or higher.

Real example: You finance $2,000 at 0% for 12 months. You pay down $1,800 but have $200 left when month 12 hits. You don't owe interest on $200. You owe interest on $2,000 for the full 12 months. That could be $400+ in surprise charges.

If you take a 0% offer, set up payments that guarantee you'll pay it off with at least one month to spare. Don't cut it close.

A little effort before you buy can save real money:

Check your credit score before you shop. Your score largely determines what rates you'll get. If it's below 670, spending a few months paying down balances and making on-time payments could mean significantly better terms when you're ready to buy. That "great deal" on furniture will still be there in 90 days.

Don't automatically take the store's financing. It's convenient, but it's not always the best deal. Before you apply, check:

• Personal loan rates from your bank or credit union
• Online lenders (LendingClub, SoFi, etc.)
• Credit cards with 0% intro APR offers

Sometimes the store has the best rate. Sometimes a credit union personal loan beats it by 5+ percentage points.

Ask about negotiating. On larger purchases ($3,000+), some retailers have flexibility on rates or terms. It doesn't always work, but "Is there any room on the interest rate?" costs nothing to ask. Worst case, they say no.

Look at total cost, not just monthly payment. The salesperson will focus on the monthly number—"Just $89 a month!"—because it sounds manageable. You should focus on the total payment. That's what actually leaves your wallet.

Set up autopay immediately. Late payments trigger fees ($25-40 typically), can hurt your credit score, and might even void promotional rates. Autopay removes the risk of forgetting.

This calculator provides estimates based on standard loan math. Your actual payment might vary slightly depending on how your lender calculates interest, any fees that aren't included in the APR, or rounding.

Use these numbers to compare options and understand what you're getting into—not as a substitute for the actual terms in your financing agreement. When you get the real paperwork, compare it to what you calculated here. If something looks significantly different, ask why before you sign.

And if anything in the agreement is confusing, ask questions. Lenders expect it. The only bad question is the one you don't ask and regret later.