All-In Cost

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.

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