Monthly repayment or total cost: what matters

Two numbers, two questions

The monthly instalment tells you whether you can afford each payment. The total repaid (instalment × number of months, plus any fees) tells you what the loan really costs.

An illustration

These figures are made up to show the idea. They are not a quote and not any lender's prices.

The longer loan costs P300 less each month but P10,800 more in total.

What to do with this

• Choose the shortest term whose instalment you can comfortably afford.
• Compare quotes on the total repaid, not only the instalment.
• Ask whether you can repay early, and whether that saves money.