Total cost of a loan calculator
This total cost of a loan calculator adds up everything you will pay: the principal, the interest and any origination fee, so you see the true price of borrowing.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $2,621.55 | $1,017.45 | $6,378.45 |
| 2 | $2,983.40 | $655.60 | $3,395.05 |
| 3 | $3,395.05 | $243.76 | $0.00 |
What counts as the cost of a loan
The cost of a loan is everything you pay above what you receive: the interest, any origination fee and any other fees. A $9,000 loan with a 6% fee gives you $8,460 in hand but you repay the full $9,000 plus interest. The sub-heading shows the APR with the fee included.
How to lower the cost
Choose a shorter term, a lower rate, a loan with no origination fee and a lender without prepayment penalties so you can repay early. Compare total cost, not just the payment.
$9,000 at 13% by loan length
Borrowing $9,000 at 13% over 3 years costs $303.25 a month and $1,917 in interest, $10,917 in total. Shorter terms raise the payment but cut the interest, and longer terms do the reverse. The table shows the trade-off across common terms.
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 12-month | $803.86 | $646 | $9,646 |
| 2-year | $427.88 | $1,269 | $10,269 |
| 3-year | $303.25 | $1,917 | $10,917 |
| 4-year | $241.45 | $2,589 | $11,589 |
| 5-year | $204.78 | $3,287 | $12,287 |
| 7-year | $163.73 | $4,753 | $13,753 |
| 10-year | $134.38 | $7,126 | $16,126 |
How your rate changes the cost
Personal loan rates vary widely with credit score, from the mid single digits for strong borrowers to 30% or more for weak credit. On $9,000 over 3 years, moving from 13% to 16% adds $474 in interest.
| APR | Monthly payment | Total interest |
|---|---|---|
| 10% | $290.40 | $1,455 |
| 11.5% | $296.78 | $1,684 |
| 13% | $303.25 | $1,917 |
| 14.5% | $309.79 | $2,152 |
| 16% | $316.41 | $2,391 |
How much can you borrow for a given payment?
Working backwards at 13% over 3 years, here is the loan size each monthly payment supports.
| Monthly payment | Loan amount |
|---|---|
| $200/month | $5,936 |
| $300/month | $8,904 |
| $400/month | $11,872 |
| $500/month | $14,839 |
When is half of a $9,000 loan repaid?
With a $303.25 payment, the balance falls below half ($4,500) after 20 payments, about 1.7 years into a 3 years loan. Because interest is highest at the start, the second half of the loan is paid down much faster than the first.
| After | Balance left | Paid so far |
|---|---|---|
| 1 year | $6,378 | $3,639 |
| 2 years | $3,395 | $7,278 |
Frequently asked questions
How do I calculate the total cost of a loan?
Multiply the payment by the number of months and add any fees. Subtract the amount you received to see the cost of borrowing.
Do fees count as interest?
They are not interest, but they raise your effective APR, because you repay the full amount but receive less.
How is a loan payment calculated?
The payment is principal × r ÷ (1 − (1 + r)^−n), where r is the monthly rate (APR ÷ 12) and n is the number of months. Each payment covers that month’s interest first, and the rest reduces the balance.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the money. APR also includes certain fees, so it is the better number for comparing offers. This calculator treats the rate you enter as the rate that accrues on the balance.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.