Solving For Loan Cost Total Use the above formula to determine the total amount you will pay for a loan. Example: If we borrow $100,000 for 10 years at 8 per cent annual percentage rate, what is the total cost of the loan (principal plus interest) ? 1) The rate (r) would be 8 divided by 1,200Now you can calculate the total interest you will pay on the load easily as follows: Select the cell you will place the calculated result in, type the formula =CUMIPMT (B2/12,B3 12,B1,B4,B5,1), and press the Enter key. See screenshot:04/06/2021 · Calculation: You can calculate your total interest by using this formula: Principal loan amount x Interest rate x Time (aka Number of years in term) = InterestTo calculate the total interest for a loan in a given year, you can use the CUMIPMT function. In the example shown, the total interest paid in year 1 is calculated by using 1 for start period and 12 for end period. The The formula in F5 is: = CUMIPMT(5 % 12,60,30000,1,12,0)29/04/2021 · A = P {r (1+r)^n} { (1+r)^n –1} Let’s calculate that based on our previous example of a $15,000 car loan, with a 5% interest rate paid over 5 years of monthly payments. (P) would be $15,000 If you know the monthly payment and the number of payments, the total of payments is R T, so the total interest you pay is R T − P. The fact that the interest is accrued monthly and payments are made in arrears only go into calculating the payment from the interest rate, which has already been done for example, our personal loan repayment calculator shows that on a loan of $20,000 at you would pay: $634 each month, adding up to $2,812 in interest over 3 years, or. $413 each month, adding up to $4,765 in interest over 5 years.

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