Skip to main content

Calculations

Calculation of monthly cost for account.

You can use the following algorithm to calculate the products part payment cost (in the end customers native currency):

(Product cost / Number of months) + (Product cost * Interest rate) + Monthly fee

For example: A product worth 9,95 € , divided on 12 months, an interest rate of 1,6583 %, and a monthly fee of 3,00 € would give the algorithm:

(9,95 / 12) + (9,95 * 1,6583 %) + 3,00 = 4,00 € per month

(The actual lowest amount to pay in the example would be 4,00 € per month, but the lowest accepted payment is 5 €)

Calculating monthly cost to display on the checkout page

The same algorithm can be applied on the checkout page, but the two occurrences of product cost needs to be replaced by the total purchase amount including shipping fee:

(Total purchase amount / Number of months) + (Total purchase amount * Interest rate) + Monthly fee

For example: The customer orders two products, each worth 19,90 € and a shipping fee of 5,95 € is added. This algorithm would then apply:

(45,75 / 12) + (45,75 * 1,6583 %) + 3,00 = 7,58 € per month

Please note that the amount to pay per month should be rounded up to the nearest integer, and the lowest amount is always 5 €.

Calculation of monthly cost for annuity payment

The formula used to calculate the cost is the following:

CapitalDebt * (MonthlyInterestRate / ((1 + MonthlyInterestRate) ^ Months - 1)) + CapitalDebt * MonthlyInterestRate + InvoiceFee

Here's an example: if the total basket value is 321,8€, it gives the following:

321,8 * (1,6583% / ((1 + 1,6583%) ^ 24 - 1)) + 321,8 * 1,6583% +3,00 = 19,37€ per month

Please note that the amount to pay per month should be rounded up to the nearest integer, and the lowest amount is always 5 €.