Enter the total credit amount ($) and the credit rate (%) into the Credit Cost Calculator. The calculator will evaluate and display the Credit Cost.

## Credit Cost Formula

The following formula is used to calculate the Credit Cost.

**CC = A * CR/100**

- Where CC is the Credit Cost ($)
- A is the total credit amount ($)
- CR is the credit rate (%)

## How to Calculate Credit Cost?

The following example problems outline how to calculate Credit Cost.

Example Problem #1:

- First, determine the total credit amount ($). The total credit amount ($) is given as 13,000.
- Next, determine the credit rate (%). The credit rate (%) is provided as 5.
- Finally, calculate the Credit Cost using the equation above:

CC = A * CR/100

The values given above are inserted into the equation below:

CC = 13,000 * 5/100 = 650 ($)

Example Problem #2:** **

The variables needed for this problem are provided below:

total credit amount ($) = 16,000

credit rate (%) = 5

Entering these values and solving gives:

CC = A * CR/100 = 800 ($)