🏦 Loan Simulation
Find out how many years of your life are going, and how many months will be financially suffocating.
Start Simulation ←Loan Simulation
What This Loan Simulation Calculates
How To Use This Loan Simulator
Enter your loan amount, duration in years, and the interest rate (auto-filled based on your country). The simulator calculates your monthly payment, total interest paid, and most importantly — how many years of your life this loan represents. It shows you the stress zone: months where your payment exceeds 45% of your income, making financial breathing difficult.
What the Numbers Mean
Total Payment: Everything you'll pay back (principal + interest). Total Interest: Pure cost of borrowing — money that goes to the lender, not your asset. Years of Life: How many years of your income this loan will consume, calculated by dividing total interest by your annual income.
Example Scenario
$100,000 loan at 5% for 20 years: Monthly payment = $595. Total paid = $142,000. Interest cost = $42,000. If you earn $50,000/year ($4,167/month), that $42,000 in interest represents about 10 months of your entire annual income — effectively 10 months working just to pay interest. This is why understanding total cost, not just monthly payment, matters.
Why This Matters
Most people focus on "Can I afford the monthly payment?" instead of "What is the true cost of this loan?" A small interest rate difference (1-2%) can cost tens of thousands over the loan life. Using extra payments to pay down the loan faster reduces interest dramatically. This tool helps you see the big picture before committing to decades of payments.
Key Insights
💡 Shopping Matters
Comparing rates from just 3 lenders can save you thousands in interest. A 0.5% difference on a $300k loan = $60,000+ in savings over 30 years.
📈 Extra Payments Work
Adding $100-200 extra per month can cut years off your loan and save tens of thousands in interest. Small extra payments compound into huge savings.
⏰ Time vs Amount
A 30-year loan at 5% costs nearly twice as much in interest than a 15-year loan at the same rate. Your choice of duration dramatically affects total cost.
🎯 Affordability Check
If your payment exceeds 30% of income, the loan creates stress. Above 45%, it becomes financially suffocating. Use this tool to find your real affordability ceiling.
💰 Hidden Costs
Interest is direct cost. But remember: maintenance, insurance, taxes, and opportunity cost add more. Use the total interest number as your baseline, not your ceiling.
🔄 Recalculate Scenarios
Try different loan amounts, terms, and rates. See how each changes. This experimentation helps you understand your true options before deciding.
💭 Remember: This tool shows you the numbers, not financial advice. Your decision should consider your full financial situation, goals, and priorities.