Financial Literacy Tool

True Cost Loan Calculator

Banks focus on the monthly payment. We focus on the total cost. See how interest eats into your money and how to fight back.

Loan Parameters
Adjust the values to see how interest accumulates.
+$0

Paying even a little extra directly reduces your principal, slashing total interest.

Monthly Payment
$1,580
Total Interest
$318,861
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Total Cost Breakdown
AI Financial Co-Pilot
Premium tax planning & interest optimization report
1 Free Audit

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Understanding the "True Cost" of Debt

When you take out a loan, the "sticker price" (the principal) is only part of the story. The interest rate and the term length determine the final price tag.

The Power of Extra Payments

Because interest is calculated on your remaining balance, paying even $50 extra a month reduces that balance faster. This has a snowball effect: lower balance = less interest charged next month = more of your payment goes to principal.

Pro Tip: Making one extra mortgage payment per year can shave years off your loan term!

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