Layby Payment Calculator NZ
This calculator works out your layby payments in New Zealand from the price of the item, your deposit and the number of payments, and shows the payment amount and how long until you have paid it off. Layby is a refreshingly simple way to buy something you cannot pay for all at once: you put down a deposit, the retailer sets the item aside, you pay it off in instalments, and you take it home once it is fully paid. Unlike Buy Now Pay Later, you do not get the goods until the end, but the trade-off is that there is no interest and no debt, you are simply saving toward the purchase with the item reserved for you. Working out the instalments is straightforward: subtract your deposit from the price to get the balance, then divide that balance by the number of payments to find each payment. You enter the price, the deposit, the number of payments and how often you will pay, and the calculator returns the payment amount, the balance owing after the deposit, and the time until it is paid off. Use it to plan your instalments and check the schedule fits your budget. Be aware that some retailers charge a cancellation fee if you pull out of a layby, so read the terms. A clear, interest-free way to plan a purchase.
Layby is interest-free, but you take the item only once fully paid, and some retailers charge a cancellation fee. Read the terms.
How it works
The balance is the item price minus your deposit. The payment amount is that balance divided by the number of payments. The payoff time is the number of payments multiplied by the weeks between payments, so fortnightly payments are spaced two weeks apart and monthly about 4.3 weeks.
Worked example
A 600 dollar item with a 60 dollar deposit leaves a 540 dollar balance. Over 12 fortnightly payments that is 45 dollars a payment, paid off in about 24 weeks.
Related calculators
- BNPL True Cost: the credit alternative.
- Discount Stacking: stacked discounts.
- Savings Goal: save instead.
- Hire Purchase Cost: another option.