Payment plan calculator
Offering a customer a payment plan on a job? Enter the total, the deposit and how many payments, and get the installment amount and a dated schedule you can download. Free, no sign-up, and nothing leaves your browser.
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How to use the payment plan calculator
- Enter the job total, then the deposit as a dollar amount or a percent of the total.
- Choose how many payments and how often (weekly, every two weeks or monthly), and the date of the first payment.
- Pick the financing: none, an APR on the unpaid balance, or a flat fee. Leave it on none for an interest-free plan.
- Check the payment amount, the total paid and the finance charge, then read down the schedule.
- Download the schedule as a PDF or CSV, or copy the plan into an estimate as payment terms.
Writing payment terms into an estimate or invoice
A payment plan is only useful if the customer agreed to it in writing before the work starts. The button above puts a plain-language summary into the terms of a new estimate or invoice. Edit it there, then send it for approval. These points keep the terms clear:
- State the amounts and dates. Deposit, number of payments, each amount, the first due date and the schedule (for example, the 1st of each month).
- Say what the total is. If there is a finance charge or fee, show it as its own line and give the total the customer will pay.
- Say what happens if a payment is missed. A grace period, a late fee if your state allows one, and whether work pauses. Only promise what you will actually do.
- Tie payments to the work if you can. Milestone payments (start, rough-in, completion) can fit a job better than equal installments. Use the calculator for equal installments and edit the text for milestones.
- Get the customer's approval on the document. A signed estimate or an approval link beats a text message.
Consumer-credit basics
Letting a homeowner pay over time can count as extending credit. In the U.S., Regulation Z, the Truth in Lending rule written by the CFPB, applies to a person who regularly extends consumer credit that carries a finance charge or is payable by written agreement in more than four installments, not counting a down payment. If it applies you may need to give specific written disclosures, such as the finance charge and the APR. State laws add their own limits on interest, fees and licensing, and business customers are treated differently from consumers. This page is general information, not legal advice: ask a lawyer or your state regulator before you charge interest or fees, and read the sources below.
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Frequently asked questions
How do you calculate a payment plan?
Subtract the deposit from the job total to get the amount to finance. With no interest, divide that by the number of payments. With an APR, the calculator uses the standard loan formula: the rate per period is the APR divided by the payments per year (12, 26 or 52), and each payment covers that period's interest plus part of the principal. The last payment is adjusted by a few cents so the schedule adds up exactly.
Can I offer an interest-free payment plan?
Yes. Leave financing on none and the plan is the unpaid balance split evenly, with any leftover cents added to the earliest payments. Check the consumer-credit note on this page before you offer more than four installments, because disclosure rules can apply even with no interest.
What is the difference between an APR and a flat fee?
An APR is charged on the balance still unpaid, so the interest part of each payment shrinks over time. A flat fee is a fixed dollar amount added to the plan and spread evenly across the payments. Both are shown as the finance charge. A flat fee on a short plan can work out to a high APR, so look at the total you are asking the customer to pay.
Should the deposit come out of the payment plan?
Usually, yes. A deposit at signing covers your materials and scheduling and lowers the amount you finance. The calculator treats the deposit as paid up front and builds the plan on the rest. You can set it to zero if you do not take a deposit.
Do I need to be a lender to let customers pay in installments?
Not always, but rules can apply. In the U.S., the Truth in Lending rules (Regulation Z) cover a person who regularly extends consumer credit that has a finance charge or is payable by written agreement in more than four installments, not counting a down payment. State licensing and interest-rate limits also vary. Ask a lawyer or your state regulator before you charge interest or fees.
Is anything saved or uploaded?
No. The calculation runs in your browser, and your last inputs are kept only in this browser so you do not have to retype them. There is no account and no upload.
Is the schedule a loan offer or legal advice?
Neither. It is arithmetic for planning and for writing clear payment terms into your own estimate or invoice. Rounding, fees, taxes and your state's rules can change what you may charge, so confirm the terms before the customer signs.
Sources
- 12 CFR 1026.2, Definitions and rules of construction (Regulation Z) — Consumer Financial Protection Bureau. Defines a creditor, including a person who regularly extends consumer credit that is subject to a finance charge or is payable by written agreement in more than four installments, not including a down payment.
- What is an APR? — Consumer Financial Protection Bureau. Explains the annual percentage rate as the yearly cost of credit, including interest and certain fees, expressed as a rate.