Personal Loan CFT Calculator 🌎

What Is the CFT?

The CFT (Costo Financiero Total — total financial cost, Argentina's APR-equivalent disclosure) is the annualized cost of a loan expressed as a percentage rate. Unlike the TNA (Tasa Nominal Anual, the nominal annual rate banks advertise), the CFT includes every mandatory cost: interest, VAT on interest (21% in Argentina), origination fees, and mandatory insurance (life and unemployment, where applicable).

By law, the BCRA (Argentina's central bank) requires every financial institution to disclose the CFT in each credit offer (Communication A 6323 and its updates). That makes the CFT the only number that is comparable across lenders: two loans with the same TNA can have very different CFTs if one includes insurance or fees the other doesn't.

> Rule of thumb: when comparing loans, always compare CFT against CFT, never TNA against TNA.

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How It's Calculated

This calculator uses the French amortization system (fixed installments), the standard for most bank personal loans in Argentina.

Step 1 — Monthly rate:

monthly_rate = TNA / 12 / 100

Step 2 — Base installment (French system):

base_installment = principal × monthly_rate × (1 + monthly_rate)^n
                   ─────────────────────────────────────────
                          (1 + monthly_rate)^n − 1

Step 3 — Total installment:

total_installment = base_installment + monthly_fees_and_insurance

Step 4 — Total repaid:

total_paid = total_installment × n

Step 5 — Annualized CFT:

CFT = [ (total_paid / principal)^(12 / n) − 1 ] × 100

This final step converts the effective cost accumulated over the life of the loan into an annual rate, which lets you compare loans of different terms on equal footing.

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Why the CFT Is Always Higher Than the TNA

For a loan with a 90% TNA, the CFT can land between 110% and 140% depending on the bank and the term. The factors that open that gap:

Illustrative example (sample figures, not an offer):

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What the CFT Does NOT Include (check these separately)

The CFT does not cover costs that can arise during the life of the loan:

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Common Mistakes When Reading the CFT

1. Confusing CFT with TEA (Tasa Efectiva Anual, the effective annual rate). The TEA only reflects the effect of compounding on the TNA; it excludes VAT and fees. The CFT is always ≥ TEA.

2. Comparing CFTs across very different terms without context. A 6-month loan can show a seemingly higher CFT than a 24-month one even when its real cost is lower, because fixed origination costs get annualized over less time.

3. Assuming the lowest CFT guarantees the lowest installment. If a bank waters down upfront fees but charges pricier insurance, its CFT can match another bank's while distributing the cost differently over time.

4. Not checking whether the insurance is optional. Some insurance offered alongside the loan is optional; if you decline it, the actual CFT you pay will be lower than quoted.

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Regulatory Reference