This will calculate the interest cost over the life of a loan.
Explanation of Terms Principal: The principal amount of the loan that will be taken out Interest Rate: The annualized interest rate that you will be charged on the loan Years to Repay: The number of years that it will take to repay the loan
Say you are considering taking out a mortgage for a house but you want to know how much interest you will end up paying over the life of the loan. In this example you want to borrow $100,000 at an interest rate of 5% and you want to take 30 years to pay back the loan. 100000 would be your principal, 5 would be your interest rate, and 30 would be the years to repay. In this example the total interest that would accrue on the loan is $93,255.20.