The monthly payment is only one part of the cost. The total amount you repay is the number that shows what the loan really costs.
The basic calculation
Multiply the monthly payment by the number of months in the term. Add any origination fee or administration fee that is charged up front. The result is the total you will pay if you make every payment on time.
Example: a $10,000 loan with a $320 monthly payment for 36 months costs $11,520 before fees. If the lender charges a $300 origination fee, the total becomes $11,820.
Why the same monthly payment can hide different costs
A longer term lowers the monthly payment but increases the total interest. Two loans can have identical monthly payments and very different total costs if the terms are different.
Always calculate the total for the exact amount and term you plan to use. That is the only way the comparison stays fair.
What to do with the number
Write the total repayment next to the CAT for every offer. The combination of both numbers gives you a clearer picture than either figure alone.
If the total is higher than you expected, consider a smaller amount or a shorter term before you continue on the lender’s site.
Additional points to consider
Comparing options takes a few extra minutes but can save a significant amount of money over the life of the product. Write down the key numbers (rate, fees, total cost, term) for each offer so you can see the differences clearly instead of relying on memory.
Official websites update their terms regularly. The numbers you see today may change after the provider reviews your specific information. Always confirm the final figures on the provider’s site before you accept any offer or create an account.
If something is unclear, use the help or contact section on the official website. Reputable providers explain their fees, rates, and requirements in plain language. Third-party summaries are useful for orientation but do not replace the official information.
Take your time. Rushing an application or a signup because of a limited-time promotion often leads to choices that cost more later. A clear understanding of the total cost and the conditions is more valuable than speed.
Note: This site is independent and informational. Final terms and applications are handled only on the official website.