Cash discount or installments? Compare the options

Compare a purchase in Brazilian reais

What this estimate assumes

It assumes equal installments, no down payment, the first payment due in one month and each later payment one month apart. Each payment is discounted by (1 + monthly rate) to the power of the number of months. The result applies only under these assumptions and depends on the net rate you enter; it does not guarantee that your money will earn that amount.

How to use the comparison

Enter the total upfront price, the installment amount and count, and an estimate of the net monthly return you could maintain while setting aside money for the due dates. If there is no return, or you prefer not to assume one, keep the rate at 0%. Check whether the advertised amount is the full price and whether a down payment, fee, insurance or other charge sits outside the installments.

Discounts, credit and cautions

In Brazil, Law 13,455/2017 allows prices to differ by payment term or instrument and requires discounts to be disclosed visibly. This tool compares only the values you enter; it does not verify a merchant offer or account for taxes, inflation, card rewards, missed-payment risk or different due dates. For a credit or financing operation, also compare the Total Effective Cost (CET) and total amount due. Do not put an emergency reserve at risk for a theoretical gain.

Sources and limitations

• Brazilian Law 13,455/2017 — price differences and disclosure of discounts
• Central Bank of Brazil — precautions when taking credit and checking CET

Frequently asked questions