Definition
Total amount repayable
The total amount repayable is the full amount you would pay back over the life of a credit agreement, including the original amount borrowed, all interest and any charges. It is often more useful than the monthly payment when comparing borrowing options.
Example
Borrowing £5,000 at 12% APR over 3 years might mean a total amount repayable of £5,959 — £959 more than the original loan.
Common misunderstandings
- A lower monthly payment does not always mean a lower total cost — spreading repayments over a longer term often increases the total amount repayable.