Enter the desired withdrawal amount, the number of periods (months), and the final charge or amount paid for the cash advance to calculator the cash advance interest rate.
Cash Advance Interest Formula
The following equation is used to calculate a cash advance interest rate.
I = P / AW * 100 / m
- Where I is the cash advance interest (%)
- P is the final amount paid
- AW is the cash taken out at time of withdrawal
- m is the number of periods or months.
Cash Advance Interest Definition
A cash advance interest is defined as the total interest paid on a cash advance or a cash that you take out as credit.
Cash Advance Interest Example
How to calculate cash advance interest?
- First, determine the initial withdrawal.
Determine how much cash was initially withdrawn or taken out as credit.
- Next, determine the total number of periods.
Determine the number of months before the credit or cash advance is paid off.
- Next, determine the total amount paid.
Calculate the final amount paid for the cash advance.
- Finally, calculate the cash advance interest.
Calculate the interest using the equation above.
Cash advance is a credit or loan taken out in advance of payment of that cash using an interest rate.