Cost guide
How to Calculate the Total Cost of a Personal Loan
A simple way to estimate total loan cost is to multiply the monthly payment by the number of payments, then add required fees if they are not already included. Subtract the amount borrowed to estimate finance cost.
Example calculation
If a $10,000 loan has an estimated $254 monthly payment for 60 months, the total of payments is about $15,240. Before fees, that is about $5,240 more than the amount borrowed.
What can change the real cost
Origination fees, late fees, returned-payment fees, optional products, payoff timing, and payment schedule can change the actual cost. Read the lender agreement.
| Step | Formula or action |
|---|---|
| Total of payments | Monthly payment x number of payments |
| Add fees | Add required fees not already included |
| Finance cost estimate | Total cost - amount borrowed |
| Compare options | Review APR, payment, term, fees, and total repayment together |
Methodology and limitations
Examples are rounded and based on fixed-payment installment assumptions. They do not include lender-specific fees unless stated.
ConsumerNetwork.Group is not a lender, does not make credit decisions, and cannot guarantee approval, funding, loan amounts, rates, or terms. Any loan terms are provided by the lender or partner you choose to continue with.
Sources and references
Related resources
Calculate total cost before starting or continuing any loan request.
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