What is an 'All-In Cost'

An all-in cost is every cost involved in a financial transaction. All-in costs can be used to explain the total fees and interest included in a financial transaction, such as a loan or CD purchase, or in a securities trade. By comparing all-in costs, investors and borrowers can more easily compare net gain potential.

BREAKING DOWN 'All-In Cost'

The costs associated with an investment can adversely impact an investor's ability to profit, so understanding the all-in costs of a trade, including the spread and commission, is important. In terms of loans, consumers need to understand the true cost of their loans, including closing costs and interest, in order to evaluate both their ability to pay it off and whether the item is worth that expense.

RELATED TERMS
  1. Round Trip Transaction Costs

    All costs associated with opening and closing a financial or ...
  2. All-In Coverage

    A type of insurance coverage that applies to communally used ...
  3. Transaction Costs

    Expenses incurred when buying or selling securities. Transaction ...
  4. Friction Cost

    The direct and indirect costs associated with the execution of ...
  5. True Interest Cost - TIC

    The real cost of taking out a loan. True interest cost includes ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's ...
Related Articles
  1. Investing

    What Are Transaction Costs?

    Transaction costs are expenses incurred from buying or selling securities.
  2. Personal Finance

    What is the Cost of Funds?

    Cost of funds is the interest cost financial institutions pay to use the funds they deploy in their business.
  3. Investing

    What Are The Different Types Of Costs In Cost Accounting?

    Cost accounting measures several different types of costs associated with a company’s production processes.
  4. Investing

    Understanding Cost of Revenue

    The cost of revenue is the total costs a business incurs to manufacture and deliver a product or service.
  5. Retirement

    Sometimes It Pays to Borrow from Your 401(k)

    401(k) loans have been demonized, but they're often the most beneficial source of cash.
  6. Managing Wealth

    What Determines Your Cost Basis?

    In any transaction between a buyer and seller, the initial price paid in an exchange for a product or service will qualify as the cost basis. When it comes to securities and related financial ...
  7. Investing

    The Hidden Costs Of Investing In Mutual Funds

    Find the hidden fees in your portfolio, so that you can increase your rate of return.
  8. Insights

    Simple Interest

    Simple interest is a quick method of calculating the interest charged on a loan. Simple interest is determined by multiplying the interest rate by the principal by the number of periods.
  9. Small Business

    Explaining Cost Of Capital

    Cost of capital is the cost of funds used to finance a business.
  10. Investing

    Avoid The Monthly Payment Trap

    Low monthly payments are easy on the wallet. However, interest and other fees lurk just below the surface.
RELATED FAQS
  1. How are fixed costs treated in cost accounting?

    Learn how fixed costs and variable costs are used in cost accounting to help a company's management in budgeting and controlling ... Read Answer >>
  2. What are the differences between period costs and product costs?

    Find out why GAAP separates all company expenses into either period or production costs and how this impacts the way expenses ... Read Answer >>
  3. How do fixed and variable costs each affect the marginal cost of production?

    Learn about the marginal cost of production, how to calculate the marginal cost, and how fixed costs and variable costs affect ... Read Answer >>
  4. How do you calculate the ratio between debt and equity in the cost of capital

    Discover how to calculate the ratio between debt and equity when making cost of capital estimations using the weighted average ... Read Answer >>
  5. What is the difference between fixed cost and total fixed cost?

    Learn what a fixed cost is, what a variable cost is, what total fixed costs are, and the difference between a fixed cost ... Read Answer >>
  6. What are the different types of costs in cost accounting?

    Learn about the different types of costs associated with cost accounting, such as direct, indirect, fixed, variable and operating ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center