The total interest you pay depends mainly on the amount borrowed, interest rate, repayment term, and loan structure. A larger loan or higher interest rate generally increases the amount of interest you pay. A longer repayment term can also increase total interest because the balance remains outstanding for a longer period.
For example, two borrowers could take the same loan amount at the same rate but pay different amounts of interest if they choose different repayment terms. The borrower with the longer term may have a lower monthly payment but a higher total borrowing cost.
To estimate your interest, enter the loan amount, rate, and term into a calculator and compare the total payments with the original principal. Our interest calculator can help you understand how interest affects the overall cost.
Before borrowing, look at both the monthly payment and total interest rather than choosing a loan based only on the payment amount.
