Total interest

Amount repaid

For every personal loan, you will have to repay the loan in equal installments and the repayment will consist of interest payments as well as the principal amount repaid.

Total payments

To calculate the total interest paid on the loan you will need to take into account all the amounts that you have repaid over the life of the loan. This will also include the repayments on account of upfront instalments that are recovered from you.

Principal component

Out of the total amount that you pay the principal component consists of the amount of loan that is sanctioned and disbursed to you. This is an easy figure to get from the loan workings.

Interest component

The remaining amount of the repayment proceeds consists of the interest paid, and the total amount paid over the life of the loan will give an estimate of the total interest cost.

Calculations

The various calculations from this working will help you arrive at the total cost of the loan. This plus other workings will give you an idea about the overall position on the expense front.