Loan Total Cost Calculator
See the monthly payment and the full cost of a loan once interest and the processing fee are added together.
Recent
Formula
How the calculation works
The monthly payment is the standard instalment, and multiplying it by the months gives everything you pay back.
The total interest is that figure minus the loan, and the processing fee is charged once on the amount borrowed.
The total cost is interest plus fee, which is the number to compare between two loan offers.
Common mistakes
- Comparing EMIs only and ignoring the processing fee, which can add a full percent of the loan to the cost.
- Forgetting that some lenders also charge insurance and prepayment penalties on top of the fee shown here.
When to use it
- Use it when two lenders quote similar rates and you want the true cost including the fee.
- It is not a full amortisation schedule; it gives the totals, not the month-by-month breakdown.
Worked example
A 500,000 loan at 12% over 36 months has a monthly payment of 16,607.15, 97,857.58 of interest and a 2% fee of 10,000, so the total cost is 107,857.58.
Common questions
Why include the processing fee?
Because it is charged up front and is part of what the loan really costs, so leaving it out understates the price.
Is total cost the same as total paid?
No, total cost counts interest and fees, while total paid is every rupee that leaves your account including the principal.
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