Consumer Loan Calculator
See what a consumer loan will cost you per month and in total over the term. Consumer loans typically carry a higher rate than mortgages, so the total cost can be significant.
At —% interest, the monthly payment would be — — — more per month than today.
How to use the consumer loan calculator
- Enter how much you plan to borrow.
- Enter the nominal annual interest rate — check your loan offer; consumer loans often carry 8–25% interest depending on your credit rating.
- Enter the desired repayment period. The calculator shows the monthly payment and total cost.
How the consumer loan is calculated
The calculator uses the same amortization formula as for other loans:
where L is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months.
Worked example: $10,000 at 14 % over 5 years costs $233 per month. Across 60 payments you repay $13,961, so 13,961 − 10,000 = $3,961 is interest — close to 40 % of what you borrowed. The same amount at a typical mortgage rate would cost roughly a third of that in interest, which is why consolidating consumer debt into secured borrowing saves so much.
The difference from a mortgage is that consumer loan interest is far higher, since the loan isn't secured by any collateral. That makes the total cost — especially the interest portion — a much larger share of what you pay back.
Frequently asked questions
Why is the interest rate on consumer loans so much higher than on mortgages?
Consumer loans are unsecured, meaning there's no collateral like a home or other asset backing them. That makes the risk higher for the lender, which is reflected in a higher interest rate.
Should I refinance several consumer loans into one?
If you have several expensive small loans, it can often pay off to consolidate them into one refinancing loan with a lower rate. Try the refinancing calculator to see an estimate of the savings.
Is it cheaper to pay off the loan faster?
Yes. A shorter term gives a higher monthly payment, but significantly lower total interest costs since you pay interest for fewer months.