Example 1
- Amount: 5,000
- Rate: 10%
- Term: 12 mo.
Interest 500 · Total 5,500
Cost 10% of amount
Sketch: 5,000 × (10%/12) × 12. A short term limits cost in this model.
Cost of Loan calculator
Type the loan amount, the annual interest rate, and the term in months. The calculator charges simple interest on the full amount for the whole time. At 5,000, 10%, and 12 months interest is 500 and the total is 5,500.
Simple interest: amount × rate × years. Annuity and all-in: total cost of loan. Monthly payment: loan installment. A sketch, not APR.
Result
Loan amount, Annual interest rate (%), Term (months) and Optional one-time fee. The result shows up here.
How results are calculated
Cost of loan is simple interest: Loan amount times Annual interest rate (%) times years, and years come from Term (months) divided by 12. At 5,000, 10%, and 12 months interest is 500, total 5,500, cost 10% of the amount. At 15,000, 12%, and 36 months interest is 5,400, total 20,400, cost 36% of the amount. At 8,000, 18%, 24 months, and an Optional one-time fee of 200, interest is 2,880, total 11,080, cost 38.5% of the amount.
People mix this calculator with the 1,112.22 payment. An annuity, the equal installment, pays the balance down each month, so interest is lower than a simple charge on the full amount for the whole time. 50,000 at 12% for 5 years in an annuity is 16,733 of interest. The same simple percent would be 50,000 × 12% × 5 = 30,000. We stay with the simple sketch so the 500-on-5,000 example stays readable.
The fields are Loan amount, Annual interest rate (%), and Term (months). Optional one-time fee adds to the total, not to interest. 200 on 8,000 lifts the total from 10,880 to 11,080. Term is in months: one year is 12, three years is 36. Typed 5 would be 5 months, not 5 years.
Total cost of loan builds 1,087.12 and all-in. Simplified APR, the annual percentage rate, is a power of cost and amount. Loan installment computes a monthly annuity. This page stays with three lines: interest, total, cost percent. Header currency only labels the amounts. A comma and a period in 10.0 mean the same rate.
The calculator waits for a positive amount, rate, and months. This is a simple-interest sketch, not a credit decision and not statutory APR. A loan with a decreasing or annuity payment will charge less interest than 5,400 on 15,000 at 12% for 36 months.
Type 5,000, 10, and 12, click Calculate, and check 500 and 5,500. Then try 8,000, 18, 24, and a 200 fee to see 2,880 and 11,080.
How to use
- Type Loan amount, for example 5,000, Annual interest rate (%), for example 10, and Term (months), for example 12.
- Type Optional one-time fee only if you want it in the total, for example 200.
- Click Calculate. 5,000 × 10% × 1 year = 500 interest and a 5,500 total.
- Check 15,000, 12%, and 36 months: interest 5,400, total 20,400. Then 8,000, 18%, 24, and a 200 fee: 2,880 and 11,080.
- A monthly annuity payment lives on the loan installment page. All-in with fees lives on total cost of loan.
Simple interest on the full loan amount
Interest = amount × rate × years, no amortization. At 5000, 10%, and 12 months interest is 500 and the total is 5500.
- interest
- Amount × (rate/12) × months in this model. 5000 × 10% × 1 = 500. At 15,000, 12%, and 36 months you get 5400.
- fee
- Optional one-time add-on. 200 on 8000, 18%, 24 months lifts the total to 11,080, 38.5% of amount.
Usage examples
Example 2
- Amount: 15,000
- Rate: 12%
- Term: 36 mo.
Interest 5,400 · Total 20,400
Cost 36% of amount
A longer term raises cost at the same rate (still without amortisation).
Example 3
- Amount: 8,000
- Rate: 18%
- Term: 24 mo.
- Fee: 200
Interest 2,880 · Total 11,080
Cost 38.5% of amount
A fee raises cost beyond interest - use total cost of loan for richer all-in; loan instalment for the payment.
Example 4
- 12,000
- 15%
- 24 months
Interest 3,600.00
Total 15,600.00
How much simple interest on a 12,000 loan at 15% for 24 months? Interest 3,600.00, Total 15,600.00.
Example 5
- 3,000
- 18%
- 6 months
Interest 270.00
Total 3,270.00
How much simple interest on a 3,000 loan at 18% for 6 months? Interest 270.00, Total 3,270.00.
When NOT to use this calculator
- If you need a full all-in cost (instalments, interest and fees outside the instalment) - the Total cost of loan calculator is a better fit.
- If you care about the monthly instalment amount for a given term and rate - use the Loan payment calculator instead of this simple cost sketch.
- If you want to compare offers using a yearly % cost - use the simplified APR estimate calculator rather than this one.
Remember: the cost as a percentage of the amount ((interest + fee) / principal) is not the same as APR/APRC. It is meant as a quick educational sketch, not a formal comparison metric.
Related calculators
FAQ
How much interest on 5,000 at 10% for 12 months?
500. 5000 × 0.10 × (12/12) = 500. Total 5,500, cost 10% of the amount.
What about 15,000 at 12% for 36 months?
Interest 5,400, total 20,400, cost 36% of the amount. 15000 × 0.12 × 3 = 5400.
Where does 11,080 come from at 8,000, 18%, 24 months, and a 200 fee?
Interest 8000 × 0.18 × 2 = 2880. Total 8000 + 2880 + 200 = 11,080. Cost 3080 / 8000 = 38.5%.
Is 500 the monthly payment?
No. 500 is interest for the whole year. The annuity on 50,000 at 12% for 5 years, 1,112.22, lives on the loan installment page.
Why is simple interest higher than an annuity?
Simple interest charges the full amount the whole time. An annuity pays the balance down, so interest falls. 50,000 × 12% × 5 = 30,000 versus 16,733 in the annuity.
Do I type a 3-year term as 3?
No. The field is Term (months). Three years is 36. Typed 3 would be three months.
Does the 200 fee sit inside the 2,880 interest?
No. 2,880 is interest alone. The 200 adds to the 11,080 total and to the cost percent.
Is this APR, the annual percentage rate?
No. Simplified APR is a sibling page. Here you see simple-interest money.
Does a comma in 10.0 work?
Yes. 10,0 and 10.0 are the same rate. Header currency only labels the result.
Is 5,500 a loan offer?
No. It is a simple-interest sketch. An offer with a payment will compute differently. It is not a credit decision.
Knowledge sources
Simple interest uses amount, rate and years. This is a sketch, not APR.
Page updated in 2026.