Loan Cost Calculator

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Understand the true cost of borrowing money by calculating total interest payments and their present value impact.

Borrowing Impact Analysis

Total Principal Paid

$500,000

Total Interest Paid

$467,144

Total Cost of Loan

$277,387

Monthly Payment Information

Your monthly EMI payment will be $5,373 for 15 years.

Year	Starting Principal	Interest Paid	Present Value of Interest	Ending Principal
1	$500,000	$49,317	$44,834	$484,841
2	$484,841	$47,730	$39,446	$468,095
3	$468,095	$45,976	$34,543	$449,596
4	$449,596	$44,039	$30,079	$429,159
5	$429,159	$41,899	$26,016	$406,583
6	$406,583	$39,535	$22,316	$381,642
7	$381,642	$36,924	$18,947	$354,090
8	$354,090	$34,039	$15,879	$323,653
9	$323,653	$30,851	$13,084	$290,028
10	$290,028	$27,330	$10,537	$252,883
11	$252,883	$23,441	$8,216	$211,848
12	$211,848	$19,144	$6,100	$166,516
13	$166,516	$14,397	$4,170	$116,438
14	$116,438	$9,153	$2,410	$61,115
15	$61,115	$3,360	$804	$0
TOTAL	-	$467,144	$277,387	-

Total Cost of Loan: This represents the present value of all interest payments you'll make over the loan term. It shows the true economic cost of borrowing in today's money, accounting for the time value of money. This is the actual financial impact on your wealth compared to paying cash today.

Glossary

What is Annual Interest Rate?

The annual interest rate is the extra percentage you pay each year on your loan. For example, 36% interest means for every ₹100 borrowed, you pay ₹36 extra per year.

Why High Interest Traps Families

High-interest loans create a debt trap. Families take one loan to repay another, each time paying more interest. A ₹50,000 loan at 36% becomes ₹86,000 over 2 years - that's ₹36,000 of your hard-earned money going to interest alone.