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:

1. First, determine the total credit amount (\$). The total credit amount (\$) is given as 13,000.
2. Next, determine the credit rate (%). The credit rate (%) is provided as 5.
3. 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 (\$)