Cost of Loan Calculator

Estimate the total cost of your loan based on the loan amount, interest rate, and loan term.

Loan Amount ($) Interest Rate (%) Loan Term (years) Monthly Payment ($) Total Loan Cost ($)

function calculateLoan(){ const loanAmount = parseFloat(document.getElementById(“loanAmount”).value); const interestRate = parseFloat(document.getElementById(“interestRate”).value) / 100; const loanTerm = parseFloat(document.getElementById(“loanTerm”).value); if(isNaN(loanAmount) || isNaN(interestRate) || isNaN(loanTerm) || loanAmount <= 0 || loanTerm el.value = “”); }

This cost of loan calculator helps you estimate your monthly payments and total repayment cost based on your loan amount, interest rate, and loan term.

Loan Formula

Monthly Payment = (Loan Amount × Monthly Interest Rate) / (1 – (1 + Monthly Interest Rate) ^ -Number of Payments)

Example Calculation

A loan of $5,000 with a 5% interest rate and a 10-year term results in a monthly payment of approximately $53.69 and a total cost of $6,442.95.

Why It Matters

Understanding your loan’s total cost helps you plan your finances and make informed decisions about your borrowing options.

Smart Strategy

Consider paying extra toward your loan principal to reduce the total interest paid over the life of the loan.

FAQs

How is the monthly payment calculated? The monthly payment is based on the loan amount, interest rate, and loan term.

What happens if I increase the loan term? A longer loan term usually reduces your monthly payment but increases the total interest paid.

Can I make early payments? Yes, making early payments can help reduce your loan’s total cost.