How to use the Installment Plan Calculator
- 1 Enter the cash price.
- 2 Enter the advance you pay upfront.
- 3 Enter the number of monthly installments.
- 4 Enter the markup as a flat percentage.
Worked example
A Rs 150,000 phone with Rs 30,000 advance, 12 installments and 25% flat markup. Markup is Rs 30,000, so the qist is Rs 12,500 a month and you pay Rs 180,000 in total, Rs 30,000 more than cash. The true yearly rate is about 43%.
Features
Monthly qist
Balance plus markup divided by months.
True rate
The effective yearly rate of a flat markup.
Extra cost
How much more than cash you pay.
When to use it
Mobile phones
Check qist plans for phones.
Bikes and electronics
Compare shop plans.
Furniture
Plan payments for furniture.
Comparing with loans
Compare with a bank loan.
Frequently asked questions
What is a flat markup?
Markup charged on the full balance for the whole period, even though you repay it monthly.
Why is the true rate higher?
Because you repay part of the balance each month, a 25% flat markup over a year is worth about 43% a year.
Are installment plans halal?
Islamic scholars allow a higher price for deferred payment if the price is fixed at the time of sale and there is no penalty interest.
What about late fees?
Ask about late payment charges before signing.
Should I pay more advance?
A bigger advance reduces markup and the monthly qist.
Do I need a guarantor?
Most shops ask for a guarantor, cheques or documents.
Is a bank loan cheaper than qist?
Often yes, because flat markups in shop plans are high in yearly terms.
Can I pay off early?
Ask the seller; some plans reduce markup for early payment.
What documents are needed?
Usually a CNIC copy, salary slip or business proof, and a guarantor.
What if the product is faulty?
The warranty still applies; installment payments should continue unless the seller agrees otherwise.
How do I compare two qist plans?
Compare the total amount you will pay and the effective yearly rate, not just the monthly installment.
Is a longer plan better?
Longer plans lower the monthly amount but usually add more markup.
Should I read the contract?
Yes. Check the price, markup, late fees and what happens if you return the item.
Why do shops offer zero markup plans?
Some shops build the cost into a higher cash price or get support from the manufacturer, so compare the total with other shops' cash prices.
What if I want to return the item?
Return policies on installment purchases vary, so ask before signing.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated