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How is the interest for installment payments calculated?
Last updated on October 21, 2021When accepting installment payments, you can choose to either pay the interest yourself (thereby providing zero interest installments for your customers) or have the customer pay the interest.
The tables below show how much you will receive and how much the customer will pay for a sale amount of 10,000 THB at an interest rate of 0.80% under each scenario.
Merchant Pays Interest
| Sale Amount | Installment Plan Length (months) | Transaction Fee (3.65%) Including VAT (7%) | Interest (0.8%) Including VAT (7%) | Total Amount Merchant Receives1 | Amount Customer Pays per Month2 |
|---|---|---|---|---|---|
| 10,000 | 3 | 390.55 | 256.80 | 9,352.65 | 3,333.33 |
| 10,000 | 4 | 390.55 | 342.40 | 9,267.05 | 2,500.00 |
| 10,000 | 6 | 390.55 | 513.60 | 9,095.85 | 1,666.67 |
| 10,000 | 9 | 390.55 | 770.40 | 8,839.05 | 1,111.11 |
| 10,000 | 10 | 390.55 | 856.00 | 8,753.45 | 1,000.00 |
Customer Pays Interest
| Sale Amount | Installment Plan Length (months) | Transaction Fee (3.65%) Including VAT (7%) | Interest (0.8%) Excluding VAT | Total Amount Merchant Receives3 | Amount Customer Pays per Month4 |
|---|---|---|---|---|---|
| 10,000 | 3 | 390.55 | 240.00 | 9,609.45 | 3,413.33 |
| 10,000 | 4 | 390.55 | 320.00 | 9,609.45 | 2,580.00 |
| 10,000 | 6 | 390.55 | 480.00 | 9,609.45 | 1,746.67 |
| 10,000 | 9 | 390.55 | 720.00 | 9,609.45 | 1,191.11 |
| 10,000 | 10 | 390.55 | 800.00 | 9,609.45 | 1,080.00 |
1. Sale Amount - Transaction Fee Including VAT - Interest Including VAT.
2. Sale Amount / Installment Plan Length.
3. Sale Amount - Transaction Fee Including VAT.
4. (Sale Amount + Interest Excluding VAT) / Installment Plan Length.
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