Break-Even Analyzer
Determine at which term length a bank installment plan becomes cheaper than a merchant's 0% installment offer. Visualize the crossover point.
Break-Even Analyzer
Compare bank installment vs merchant 0% installment to find the break-even point. The break-even month is when the bank installment total cost becomes cheaper than the merchant's 0% plan.
How This Tool Works
How It Works
When a merchant offers 0% installment, the total price is usually marked up. This tool finds the break-even point — the term at which the bank's installment (with interest on the lower cash price) costs less than the merchant's 0% plan.
The Comparison
- Bank Installment: Cash price + (cash price × rate × months) + processing fee
- Merchant 0%: Fixed marked-up price regardless of term
Example
- Cash price: ₱50,000
- 0% installment price: ₱55,000
- Bank rate: 0.99%/month
At shorter terms, the bank installment is cheaper. But as months increase, interest accumulates and may exceed the merchant markup.
The Chart
The break-even chart shows both costs plotted over months, making it easy to see exactly where they cross.