Mobile phone installment calculator: how it works
Phones on installments look affordable per month, but the total can be much higher than the cash price. Enter the cash price, down payment, markup and months to see the real cost.
What if the shop doesn't tell me the markup rate?
Enter 0% markup and the shop's monthly amount as a check: if the shop's installment × months is more than the cash price, the difference is the markup you pay.
Is it better to save and buy cash?
Usually, yes. Even a few months of saving can avoid a lot of markup.
How installments are calculated
Reducing balance: each month you pay interest only on the amount still owed, so interest falls over time. Banks use this. Flat rate: interest is charged on the full amount for the whole period, even though you are paying it back. A "12% flat" plan really costs about 21–22% a year on a reducing balance. The calculator shows this "real rate" so you can compare offers fairly.
Questions
Is the result exactly what my bank will charge?
It is a close estimate. Banks may add processing fees, insurance (common on car loans) or a different rate after a fixed period. Ask for the full repayment schedule before signing.
What about Islamic financing?
Islamic banks use different contracts (such as Ijarah or Diminishing Musharakah) and call the cost rent or profit. The monthly amount is often similar to a reducing-balance calculation, but ask the bank for its exact schedule.
Is a 0% installment plan really free?
Sometimes. Often the price is higher than the cash price. Compare the total you will pay with the cash price at another shop.