Total Loan Cost Formula and Calculator
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This is the formula to use if you want to determine the total amount you will pay for a loan.

If we borrow $100,000 for 10 years at 8 per cent annual percentage rate, what is the total cost of the loan (principal plus interest) ?

1) The rate would be 8 divided by 1,200
      which equals .0066666666...
2) The months would be 12 × 10 = 120.
3) So the total cost of the loan would be:

.0066666666   ×   $100,000     ×   120
           1 - (1 + .0066666666) -120       

Which equals:

[ .0066666666   ×   $100,000     × 120 ]   ÷   [ 1 - (1 + .0066666666) -120 ]     =

[ 80,000 ]   ÷   [ 1 - (0.45052346071062) ]     =

80,000   ÷   0.54947653928939   =  

$145,593.11


Do you want to solve for:

or or

Input should only consist of numbers and decimal points.
Do NOT use commas, dollar signs or per cent signs.
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The above formula is used to calculate the principal of a loan if you know the total cost, interest rate and number of payments.

We'll use the previous data.
We have paid a total of $145,593.11 for a 10 year loan at 8% interest.
What was the principal?
Using the above formula, the principal would be:

145,593.11 -145,593.11 × (1.00666666666666)-120
.00666666666666 × 120

Which Equals:

145,593.11 -145,593.11 × 0.450523460710793   =
.8

145,593.11 -65,593.11   =
.8

100,000.00



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