Headline vs reality
Marketing leads with one rate or percent. In real life, that number works through your balance over time—so a “small” change can add up. Sales Tax walks through the mechanics with real numbers.
Why the total grows
Interest piles on interest. Fees get added to principal. Minimum payments stretch the timeline. When someone says “only one percent,” ask: one percent of what balance, and how often?
In dollars per year
Convert the rate to dollars per month. Multiply by twelve, then by the years you will carry the balance. If the total surprises you, you may have used the wrong balance or underestimated how long you will owe the money.
Two ways to read it
What the ad highlights What shows up in dollars
Change one input
Core lesson
Go deeper: Sales Tax. Use the calculators below with your own loan or bill numbers, not only the examples on this page.
Use the calculator
FAQ
- Where is the main lesson?
Sales Tax pulls the topic together in one place, with links to related lessons.
- Which calculator should I open first?
Use the first tool in the list for most questions. If you are reconciling payment rows on a schedule, pick amortization when it appears in the list.