$12,000 loan at 10% over 4 years

About This Loan Calculation

Here's what happens when you take out a $12,000 loan at 10% — the numbers will make you think twice. Your monthly repayment is $304.35. That covers both principal and interest — but the split changes every month. Over 48 payments you'll repay $14,608.85 in total. That's $2,608.85 more than the original loan amount. Even a 0.5% rate reduction could save you hundreds. Small differences in rate make a bigger impact the longer the term. The amortization formula banks use front-loads your interest payments. Your first payment barely dents the principal. Knowing the total interest cost — not just the monthly payment — is the single most powerful thing you can do before taking out any loan.