How we calculate costs

This calculator compares the cost of credit for a purchase across seven lenders operating in the Swedish market. The user enters a purchase amount and a fixed repayment period. The calculator then estimates the average cost of credit for each lender, taking into account both the scenario where the customer follows the fixed repayment plan and the scenario where they switch to revolving credit. This estimated average cost of credit is shown in the calculator.

3.1 Fixed-term scenario

This scenario assumes that the customer completes their chosen repayment plan in full (for example, 3, 6, 12, 24, or 36 months). The total cost of credit includes:

• Interest , calculated monthly based on the lender's annual interest rate

• Setup fee , a one-time fee charged when the credit starts (varies by lender)

• Monthly fee – an administrative fee added to each payment (varies by lender)

Not all lenders offer every repayment term. If a lender does not offer the selected term, no fixed-term cost is shown for that lender.

3.2 Revolving credit scenario

This scenario assumes that, early in the repayment period, the customer deviates from the fixed repayment plan, for example, by paying less than the scheduled amount or missing a payment. The credit then becomes revolving credit, with minimum payments made each month. The total cost of credit in this scenario includes:

• Interest – calculated monthly based on the lender’s revolving credit interest rate

• Monthly or annual fee – varies by lender (see section 4.6)

• Minimum payments – calculated according to each lender’s contractual terms (see section 4.5)

For lenders that only offer revolving credit (Avarda), the customer is assumed to make minimum payments from the outset. There is no fixed-term phase.

Nordea Gold is a credit card with an interest-free period until the next billing date. If the bill is paid in full, no interest is charged (only the ongoing monthly fee of 45 kr under Vardagspaket Övriga). If the full amount is not paid by the billing date, the outstanding balance becomes revolving credit with an annual interest rate of 14.50%. The specific terms are set out in the summary in section 5.

For Klarna, which does not offer revolving credit, the fixed-term cost is used in both scenarios.

3.3 Expected average cost

The expected average cost is calculated as a weighted average of the two scenarios above, based on the assumed proportion of customers who complete the fixed repayment plan and the proportion who switch to revolving credit. In plain terms, the formula is:

Expected cost = (proportion completing the fixed term × fixed-term cost) + (proportion switching to revolving credit × revolving credit cost)

4.1 How the fixed-term plan can convert to revolving credit

Several of the lenders compared have terms under which the fixed instalment plan, with its lower interest rate, applies only if the plan is followed exactly. If the customer pays less than the amount specified in the plan or misses a payment, the credit converts to revolving credit with a higher interest rate and a low minimum payment. This is set out in the lenders’ own terms and conditions (see section 4.5). In several cases, the conversion is automatic and requires no action from the lender beyond the customer failing to follow the plan.
To illustrate what this means for the average cost, the model uses a standardized assumption. It assumes 70% of customers complete the fixed-term plan, while 30% convert to revolving credit at some point. This percentage is based on Klarna’s historical data on the proportion of customers who convert to revolving credit. The same percentage is applied to all lenders to allow for a like-for-like comparison. This is a modeling assumption used for comparison purposes and does not represent a claim about actual customer outcomes for any individual lender.

4.2 Timing of a missed payment

In the revolving credit scenario, the customer is assumed to make their first payment according to plan and miss their second payment. During the month of the missed payment, interest continues to accrue on the outstanding balance, but no monthly fee is charged. The customer then converts to revolving credit from the third month onward.

4.3 Repayment behavior with revolving credit

The customer is assumed to pay the minimum amount allowed, the minimum payment, each month. No additional repayments above the minimum payment are included.

To allow a fair comparison between lenders, a standardized comparison period of 16 months for revolving credit. If the minimum payments repay the balance before the end of the term, the calculation ends early and the final payment is limited to the exact amount outstanding. If the balance has not been fully repaid through minimum payments by the end of the term, the remaining balance is assumed to be paid in full in the final month. This method ensures that all lenders are compared over the same time horizon.

4.4 Interest calculation

Interest is calculated and added monthly. The monthly interest rate is derived from the effective annual interest rate. Compound interest is included in the calculation.

4.5 Minimum payment rules by lender

Each lender has its own contractual rules for calculating minimum payments on revolving credit. The calculation follows the terms published by each lender. The interest rates, fees, and minimum payment rules for each lender are taken from their publicly available terms, and each figure can be traced back to a dated source document.

4.6 Fee structure

The calculator includes two types of fees:

• Origination fee, a one-time fee charged when the credit agreement begins. How the fee is spread across payments varies by lender.

• Monthly fee, an ongoing administration fee added to each payment.

• Other fees and late payment charges: The model does not include other fees, such as late payment fees, reminder fees, default interest, debt collection costs, or card-specific fees (cash withdrawal fees, foreign exchange markups, etc.). If applicable, these costs are charged in line with each lender’s terms and do not affect the credit cost calculated by this calculator.

4.7 Annual percentage rate (APR)

The annual percentage rate (APR) is calculated using the extended internal rate of return (XIRR) method, which considers actual cash flows, including disbursement dates, payment dates, and amounts, to determine the total cost expressed as an annual rate. This is a widely accepted standard for comparing the cost of credit.

Notes

1. 1.

   0% applies to promotional terms. An arrangement fee still applies.

2. 2.

   This repayment period is not offered under the latest standardized European consumer credit information (SEKKI) document but may be available through individual retailers at checkout.

3. 3.

   Avarda’s standard product (Account) is a revolving credit facility. However, some retailers offer promotional terms with a fixed repayment period through Avarda (Credit Terms §6.5). These promotional terms vary by retailer and are not included in the table above. The calculator only models the standard revolving credit product.

4. 4.

   Nordea Gold is a credit card offering up to 55 interest-free days on purchases. Fixed instalment plans, such as 3, 6, or 12 months, are not currently available.

All figures are based on each lender’s publicly available SEKKI documents and general terms and conditions, effective as of June, 2026:

• Klarna: SEKKI

• Qliro: SEKKI (Account, instalments, and promotions)

• Resurs Bank: General credit terms

  (SEKKI documents are published by retailer. The model is based on the terms in NetOnNet’s SEKKI for the Basic Account tier.)

• Svea: SEKKI (Webpay account credit, WP series)

• Walley: SEKKI

• Avarda: Credit terms (dated April, 2026)

• Nordea Gold: Pre-contractual information and general terms and conditions 9634V12

• The results are illustrative estimates and do not constitute binding offers from any lender.

• The terms used in the calculator are based on publicly available information as of June, 2026. Lenders may change their terms at any time.

• Promotional interest rates and terms (for example, 0% interest for a limited time) are not included in the calculation. Only standard terms are used. This is because promotional terms are time-limited and often subject to specific requirements, while standard terms apply throughout the normal term of the credit agreement and therefore provide the most representative and comparable view of the cost.

• Minor rounding differences may occur compared with the lender’s own calculations.

• The model does not take into account late fees, default interest, or individual credit assessments.

• The model does not take into account the customer's individual creditworthiness or any personal terms.