Cost of a revolving credit

How to calculate the cost of a revolving credit?

How to calculate the interest and the cost of a reserve of money (revolving credit or revolving credit)? The calculation method will allow you:

  • either to know how much a reserve of money costs before subscribing it,
  • or to know the time you have left to pay if you already have one.


Currently, because of the new laws, the APR applied to the revolving account is variable according to the tranches of borrowed capital or according to the speed of repayment . It is the latter solution which is most often adopted by credit institutions (Paydaynow, Sofinco, Paydaychampion). The faster you repay, the lower the TEG, and therefore the lower the cost of credit.

The choice of reimbursements

Usually, the monthly payments offered are actually a percentage of the amount borrowed. For example, for a reserve of 1000 us dollars, you have the choice between monthly payments of 30 us dollars (3% of the amount borrowed), 40 us dollars (4%), 50 us dollars (5%) ... The first thing to know: the lower the monthly payment, the longer you repay, and the more expensive the loan! The table below shows you the repayment periods and the cost of credit according to the monthly payment you have chosen.

How to calculate the duration and the interest of a reserve of money?

For each personal case you just need to do a little calculation:

  1. take the monthly repayment, for example 110 us dollars,
  2. divide it by the amount of the revolving credit, for example 3000 us dollars,
  3. you get 0.3666, which is just over 3%.

Calculation of the cost of a revolving loan
Percentage Number of
Estimated duration Example for a credit of
$ 2,000 (with an APR of 10%)
Monthly payment ($) Cost ($)
3% 40 over 36 months 60 400
4% 29 over 30 months 80 320
5% 22 - than 24 months 100 200
10% 11 - than 12 months 200 100

How to reduce the cost of a reserve of money?

  1. Choose establishments offering flexible monthly payments . A small difference in the amount on the monthly payment has a strong impact on the duration of the credit and on the total cost. It is therefore in your banker's interest to offer you small repayments which will increase the cost of credit ...! You must therefore choose (when possible) a reimbursement equivalent to at least 5% of your reserve . You are then certain to repay over a period of 2 years maximum.
  2. During repayment, as soon as your budget allows it, increase your monthly payment by simply calling the financial institution.
  3. If you have an inflow of money (like a 13th month for example) send a check to settle your reserve faster . There is no amount constraint, you send whatever you want.

Our advice . The money reserve offers are numerous and it is sometimes difficult to make a choice. Consult the table below which shows you the best offers of the moment.

Comparison of revolving account rates
Establishment Lower rate Higher rate Calculation according to
subject to acceptance by the lender
1 Cetelem 6.17% 20.82% The speed of repayment
The higher the monthly payments you pay, the lower the rate and the shorter the repayment term.
The lowest rate is reached by paying over 6 months
Find out more about Paydaynow revolving credit.
2 Cofinoga 6.17% 20.82% The speed of repayment
The rate does not vary by use or amount.
Find out more about the Cofinoga revolving credit.
3 Cofidis 11.90% 21.11% Refund speed and amount
The more you pay off high monthly payments, and the more you borrow, the lower the rate.
The lowest rate is achieved by repaying more than US $ 3,500 over 23 months.
Find out more about Paydaychampion revolving credit.
4 Franfinance 13.22% 19.93% According to the amount
The rate varies depending on the amount used. The lowest rate is reached by paying back more than US $ 3,000.
Find out more about the Franfinance revolving credit.
5 FLOA bank 13.24% 19.95% According to the amount
The rate varies depending on the amount used. The lowest rate is reached by paying back more than US $ 3,000.
Find out more about FLOA bank revolving credit.
Updated: 01/11/20

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