To help you budget, this tool provides you with insight on whether to rent or buy.
Example: You find a sofa at a furniture store for $500 and financing at 10% APR. A nearby rent-to-own store has the same sofa advertised for $15 a week, renting to own in 72 weeks. Although $15 a week sounds more affordable, it can cost you more in the end. Here's how to calculate the cost of renting versus buying. Use this tool before making your purchase.
Installment Loan
Advertised price = $500
10% APR for 1 year
$43.96* x 12 months = $527.52
You save $552.38!
Rent-To-Own
Advertised price = $500
$15.00 x 72 weeks = $1,080.00
Interest Rate:
Term (Months):
Loan Amount:
Monthly Payment:
10.000%
12
$500
$43.958
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