Cost of a Loan

What a loan costs depends on how much you borrow, the time it takes you to repay, and the APR.

For example, say you borrow $15,000 at 6% interest to buy a car. The longer you take to repay the loan, the more interest you will pay.

 

Term	3 Years	4 Years	5 Years
Number of payments	36	48	60
Amount of each payment*	$456	$352	$290
Amount repaid	$16,428	$16,909	$17,400
Total interest paid	$1,428	$1,909	$2,400

*Payments are rounded to the nearest dollar.

It works the same way with the APR. The higher your interest rate, the more your total cost of borrowing will be.

 

Interest rate (APR)	6% APR	8% APR	10% APR
Number of payments	36	36	36
Amount of each payment*	$456	$470	$484
Amount repaid	$16,428	$16,922	$17,424
Total interest paid	$1,428	$1,922	$2,424

*Payments are rounded to the nearest dollar.

 

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