Real Cost Loan Analyzer

Calculate the true cost of borrowing by factoring in inflation. See if your loan is working for or against you.

📊 Loan Details

5 years
1 year 10 years
3%
0% 15%
3%
0% 10%
🛒 Consumption
🏠 Home Renovation
🚗 Vehicle
💳 Debt Consolidation
🎓 Education
💼 Business

Additional payment to reduce loan term

💡 How It Works

With a 30,000 loan at 3% interest and 3% inflation, your real interest rate is ~0%. You're effectively borrowing for free in purchasing power terms.

⭐ Analysis Results

Real Interest Rate ℹ Loan Interest - Inflation Rate. Shows true cost.

0.0%

You're paying 0.0% in real terms.

📅 Monthly Payment
539
💸 Total Interest
2,340
Interest Savings
0
with extra payment
Time Saved
0 mo
Break-even Rate
3.0%

📊 Inflation Impact

The 2,340 interest is offset by inflation reducing the debt's value.

Future value of original loan amount: 25,000

🎯 Verdict: GOOD LOAN

Inflation cancels out interest costs.

Total Repayment
32,340
Real Cost
0
Cost per 1000
0

💡 Smart Borrowing Tips

✓ Compare at least 3 lenders before borrowing
✓ Even small extra payments reduce interest significantly
✓ Check for prepayment penalties before overpaying
✓ Consider refinancing if rates drop 1%+

⚠️ Considerations

  • Ensure you can afford 539/mo.
  • Evaluate if purchase is necessary.
⚖️

Important Disclaimer

This calculator is for educational and informational purposes only and does not constitute professional financial advice. Results are estimates based on the inputs provided and may not reflect actual loan terms. Before making any financial decisions, please consult with a licensed financial advisor who can provide personalized advice based on your specific circumstances.