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 ($) = 16,000
credit rate (%) = 5
Entering these values and solving gives:
CC = A * CR/100 = 800 ($)
