Defined term

Finance charge

A finance charge is the cost of consumer credit expressed as a dollar amount under the applicable disclosure rule, including charges included by that rule and excluding charges it excludes.

Also known as cost of consumer credit

economics · Concept code GS-CONCEPT-080 · Last verified August 20, 2026

Definition and boundaries

Definition

A finance charge is the cost of consumer credit expressed as a dollar amount under the applicable disclosure rule, including charges included by that rule and excluding charges it excludes.

Applicable jurisdiction: US federal disclosure context; applicability and classification are transaction-specific

Definition claim verification: Verified August 20, 2026

In plain language

Use Finance charge only after the cash-flow perspective, timing, contract structure, included costs, and omitted items are made explicit.

What it is not

It is not every fee in a solar transaction and it cannot be identified solely from an industry's fee label.

Decision context

Why it matters

Classification depends on the transaction and rule; inspect itemized charges, prepaid amounts, seller or lender relationships, APR, amount financed, and official interpretations.

Applicable jurisdiction: US federal disclosure context; applicability and classification are transaction-specific

Decision-context claim verification: Verified August 20, 2026

Information boundary

This page provides general educational context, not a site design, production guarantee, utility determination, contract interpretation, legal opinion, tax conclusion, or individualized financial advice. Verify property, equipment, utility, jurisdiction, program, and agreement details before acting.

Concept relationships

Affects

  • Solar loanPublished conceptFinance charge can affect how Solar loan is evaluated
  • Solar-loan dealer feePublished conceptFinance charge can affect how Solar-loan dealer fee is evaluated

Primary sources

What to do next

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