True Cost Calculator

Calculate True Cost of a Loan or Mortgage







Formula

The formula to calculate the True Cost (TC) is:

\[ TC = P + (MP \times n) + F \]

Where:

Definitions

Example

Let's say the principal loan amount (P) is $200,000, the monthly payment (MP) is $1,500, the total number of monthly payments (n) is 360, and the total fees and charges (F) are $5,000. Using the formula:

\[ TC = 200,000 + (1,500 \times 360) + 5,000 \]

We get:

\[ TC = 200,000 + 540,000 + 5,000 = 745,000 \]

So, the true cost of the loan or mortgage is $745,000.