Definition · Glossary
Total amount repayable
Personal LoansBudgeting & Money Management
In plain English
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.
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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.
Don't get caught out
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.