Compare paying an insurance premium in full against an installment plan and see the plan’s true APR.
How the pay in full vs installments calculator works
Installment plans often look cheap per month but include fees and a higher total price. Converting the difference into an effective APR makes it easy to decide.
Formula
Plan total = Down + n × (Installment + Fee). Effective APR = the monthly rate r (× 12) at which n payments repay (Pay-in-full price − Down).
How to use it
Enter the pay-in-full price.
Enter the plan’s down payment, installment amount, number of installments and per-payment fee.
Compare the extra cost and effective APR.
Worked example
A $2,400 premium vs $480 down plus ten payments of $201: the plan costs $90 more — an effective APR of about 10.1%.
Frequently asked questions
Is paying in full always better?
If the plan’s effective APR is higher than what your cash earns, yes. If you would otherwise borrow at a higher rate, the plan may be fine.
Do carriers give a pay-in-full discount?
Many personal lines carriers do; it shows up as a lower pay-in-full price.
Related calculators
Premium Finance Calculator — Calculate down payment, monthly installment, finance charge and payment schedule for an insurance premium finance agreement.
Insurance Commission Calculator — Calculate insurance agent commission on a policy premium, net premium due to the carrier, and annual commission.
Renewal Increase Calculator — Calculate the percentage renewal increase and split it into exposure growth and pure rate change.