Credit card: three ways to repay

An instalment plan advertises a small “fee per period”, which sounds cheaper than it is. This tool compares paying the bill in full against spreading it over instalments, sums the fees, and — because the principal shrinks each month while the fee does not — converts that flat fee into an approximate true annualized rate. Instalments are borrowing, not a free buffer.

Result

A 10,000 bill paid in full is just 10,000. Spread over 12 instalments, each charging 0.6% of the original balance, you pay 720 extra in fees, for a total of 10,720. Because the balance shrinks each month while the fee does not, the true annualized rate is about 13.3% — instalments are not a free buffer.

Pay in full: 10,000
Total with instalments: 10,720
Extra paid (fees): 720
True annualized rate (approx.): 13.3%

The instalment total splits into the original balance and the extra fees.

An approximation from your inputs, not a statement of your card’s exact terms.

Assumptions & limits

This is the instalment fee only; minimum-payment interest and late penalties follow your card agreement and can be far higher.