What is a layaway plan?
A layaway plan is a retail arrangement where you reserve an item by paying a deposit (down payment) and then pay off the remaining balance in equal installments before taking the goods home. Stores often add a flat service fee for holding the merchandise. This calculator works out the full cost, the up-front down payment, and the size of each installment. The math is currency-agnostic; the "$" symbol simply reflects US dollars.
How to use it
Enter the pre-tax Price, the Sales Tax rate, any flat Service Fee, the required Down Payment percentage, and how many Additional Payments you want to spread the balance over. Use the dropdown to decide whether the service fee is folded into the installments (default) or added to the down payment. The result shows your total down payment plus each equal payment.
The formula explained
First, tax is applied to the price only: \(\text{tax} = \text{price} \times (\text{taxRate} / 100)\). The merchandise total is \(\text{price} + \text{tax}\), and the total cost is \(\text{price} + \text{tax} + \text{fee}\). The base down payment is the merchandise total times the down percentage; the leftover is the balance. The service fee is then added to either the down payment or the balance, and the balance is divided by the number of installments.
$$\text{Payment} = \dfrac{(P + P\cdot t) - (P + P\cdot t)\cdot d + F}{n}$$
Worked example
Price $250, tax 6%, fee $10, down payment 25%, 4 payments, fee in payments. Tax = $15, merchandise total = $265, total cost = $275. Base down = $66.25, balance = $198.75, plus the $10 fee = $208.75. Each of the 4 payments = $208.75 / 4 = $52.19, with a $66.25 down payment.
$$\text{Payment} = \dfrac{208.75}{4} = 52.19$$FAQ
Why don't the rounded numbers add up exactly? Each displayed value is rounded to two decimals, so the down payment plus rounded installments may differ from the total by a cent or two. This is normal for layaway schedules.
Is tax charged on the service fee? No. In this calculator sales tax is applied only to the item price.
What if I enter zero additional payments? The installment amount is set to $0 to avoid dividing by zero; the remaining balance would be due as a lump sum.
