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Installment Sales Method of Accounting Calculator

<-- Sales Price
<-- Cost
<-- Installment Payment Amount
<-- # of installment payments
  

How does the Installment Sales Method of Accounting Calculator work?

Given a sales price, cost amount, installment payment amount and term, this will show the accounting for the Installment Payment method.
This calculator has 4 inputs.

What 2 formulas are used for the Installment Sales Method of Accounting Calculator?

  1. Gross Profit Percentage = Total Gross Profit / Sales Price
  2. Cost Percentage = 1 - Gross Profit Percentage

For more math formulas, check out our Formula Dossier

What 4 concepts are covered in the Installment Sales Method of Accounting Calculator?

accounting
measurement and communication of financial information
installment
one of the amounts, usually equal, into which a debt is divided for payment at stated intervals over a fixed period
installment sales method of accounting
an approach to revenue recognition in which the business owner defers gross profit on a sale until receiving cash for the sale from the buyer
profit
The amount of money left over after paying costs/expenses
Profit = Revenue - Cost



Installment Sales Method of Accounting Calculator Video