Title Delivering the lowest B2C monthly price and highest value proposition to Merchant. Introduction

Approximate monthly payment and approximate subscription period

By now, we know the sum of estimated subscription amounts and product residual values.

The next step is to calculate the approximate monthly payment, taken into account those previously mentioned values.

For this, we use the following formula:

(Sum of the estimated loan amount - the sum of residual values) / renewal period.

If we add values to this formula, then we get that the approximate monthly payment is (2176,02 - 453) / 36 = 47.86 euros

Finding an approximate monthly payment enables us to calculate the approximate subscription period.

For that, we use the following formula:

(Sum of residual values / approximate monthly payment) + renewal period.

If we add values to this formula, then we get that the approximate subscription period is (453 / 47,86) + 36 = 45.46 months.

Concluding calculations

Subscription period

The approximate subscription period contains decimal places. But as we all know, the period is usually measured in full months. That's why, to get the bundle subscription period, we will round up the approximate subscription period.

This means that 45.46 rounded up equals 46.

Total monthly payment

Previously we calculated the sum of estimated monthly payments. This was 47.86. This will not change, and the total monthly payment for such a bundle is 47.86.

Subscription amount

The subscription amount is calculated by a very simple formula where the Subscription period is multiplied by the total monthly payment.

Since we know that the Subscription period is 46 and the monthly payment is 47.86, we get 46 x 47.86 = 2201,56 euros