Instalment plan calculator

Take the advance off the price to get the balance. Add your markup to the balance, then divide the total by the number of months. A Rs 45,000 phone with Rs 10,000 advance leaves Rs 35,000. At 20% markup on that balance the markup is Rs 7,000, the total is Rs 42,000, and six months of Rs 7,000 clears it. The customer pays Rs 52,000 in all, including the advance.

That is your choice and it changes the answer, so say which one in writing. This calculator charges it on the balance after the advance, because that is the amount you are actually waiting to be paid. You can enter it as a percent of the balance once, a percent a year, or a fixed amount in rupees. Every rate is yours to type. The 20% is an example. Type your own.

The page shows two figures. The flat yearly rate treats the markup as charged on the whole balance for the whole time. The second is the rate on a reducing balance, which is how a bank quotes a loan. It is higher, because the customer pays the balance down each month but the markup stays the same. Use it to compare your plan with a bank’s offer.

Each instalment is rounded up to the nearest rupee, Rs 10, Rs 50 or Rs 100, whichever you pick, so the customer pays round numbers. The last one takes whatever is left, so the total always matches the plan to the rupee. If rounding would overshoot the total, the calculator uses smaller steps instead.

It is a signed record of what both sides agreed: the price, the advance, the markup, every due date and amount. It does not replace legal advice. For a large amount ask a lawyer whether you need a formal agreement. This tool only does the arithmetic, and whether a particular arrangement suits your religious or legal position is for you to check.

The loan markup calculator is for a business loan you take from a bank, with KIBOR, grace periods and a processing fee. This one is for the shop that sells on qist: you set the markup, you collect the instalments, and the customer gets the card.