Personal Loan CFT Calculator
The CFT (Costo Financiero Total) is the single number that tells you what a personal loan truly costs — it combines the annual interest rate, VAT on interest, origination fees, and insurance into one comparable percentage. Two banks can quote very different APRs while having very similar real costs, or vice versa. Enter your loan details to see your actual monthly payment and the annualized total cost so you can compare apples to apples.
When to use this calculator
- Comparing personal loan offers from two or more banks before signing
- Estimating total repayment cost before committing to a large purchase on credit
- Checking whether refinancing an existing loan at a lower rate actually saves money after fees
- Understanding how much of each monthly installment goes to interest vs. capital
Worked example: $500,000 over 12 months at 80% APR
- Loan principal: $500,000
- APR: 80% → monthly rate: 80 / 12 / 100 = 6.667%
- Term: 12 months
- Monthly fees + insurance: $3,500
- French amortization installment: $500,000 × 0.06667 × (1.06667)^12 / ((1.06667)^12 − 1) ≈ $61,837
- Total installment with fees: $61,837 + $3,500 = $65,337
- Total repaid: $65,337 × 12 = $784,044
- CFT = ((784,044 / 500,000)^(12/12) − 1) × 100 ≈ 57% per year
How it works
2 min readWhat is the CFT?
The CFT (Costo Financiero Total) is the annualized total cost of a loan expressed as a percentage. Unlike the headline APR, it includes all costs: interest, VAT on interest (21% in Argentina), origination fees, and mandatory insurance premiums. By law in Argentina (BCRA Communication A 6323), banks must disclose the CFT on every loan offer.
How it is calculated
This calculator uses the French amortization method (equal installments), the standard for most bank personal loans.
Step 1 — Monthly rate:
i_monthly = APR / 12 / 100Step 2 — Base installment (French amortization):
installment_base = principal × i_monthly × (1 + i_monthly)^n
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(1 + i_monthly)^n − 1Step 3 — Total installment:
installment_total = installment_base + monthly_fees_and_insuranceStep 4 — Total repaid:
total_paid = installment_total × nStep 5 — CFT (annualized):
CFT = [ (total_paid / principal)^(12 / n) − 1 ] × 100This last formula converts the effective cost over the full loan term back into an annual rate, making loans of different lengths comparable.
Why CFT > APR
For a 90% APR loan:
What a good CFT looks like
| CFT range | Interpretation |
|---|---|
| < 60% | Below inflation — rare, subsidized, or short-term |
| 60–100% | Mid-market — typical for banks with good credit scores |
| 100–150% | High cost — worth shopping around |
| > 150% | Very expensive — consider alternatives |
Ranges are illustrative for Argentina 2026 conditions. Actual market rates change frequently.
Tips for comparing loans
This calculator is for reference only. For financial decisions, consult the official loan offer (Oferta de Crédito) provided by your lender.
Frequently asked questions
What does CFT mean on a personal loan?
CFT stands for Costo Financiero Total — the Total Finance Cost. It expresses, as an annual percentage, everything you pay for a loan: interest, VAT on interest, origination fees, and insurance premiums. It is the single most honest number for comparing loan offers.
Why is CFT always higher than the APR the bank advertises?
Because the APR only reflects the interest rate. The CFT adds VAT on interest (21% in Argentina), mandatory life insurance, origination or administrative fees, and any other charges built into the contract. These extras typically push CFT 20–40 percentage points above the APR.
How is the monthly installment calculated?
Most personal loans use French amortization (cuota francesa): equal monthly payments throughout the term. The formula is: installment = principal × monthly_rate × (1 + monthly_rate)^n / ((1 + monthly_rate)^n − 1), where monthly_rate = APR / 12 / 100 and n is the number of months.
Does a lower CFT always mean a better loan?
Yes, if you're comparing loans of the same amount and term. CFT is designed exactly for this comparison. If terms differ, also compare total amount repaid in dollars, since a shorter loan has a higher monthly payment even if its CFT is lower.
Can I reduce the effective CFT by paying early?
Yes, if your loan allows prepayment without a penalty. Paying off early means you pay fewer installments, so you pay less in fees and insurance — reducing the effective total cost. Check your contract's prepayment clause (cláusula de cancelación anticipada) before calculating.
Is life insurance always included in personal loans?
In most Argentine banks, life insurance is mandatory on personal loans — it pays off the remaining balance if the borrower dies. Unemployment insurance is usually optional. Both are included in the monthly fees field of this calculator.
What's the difference between a personal loan and a revolving credit line?
A personal loan has a fixed term, fixed installments, and a known CFT upfront. A revolving credit line (like a credit card cash advance) has variable usage and no fixed term, making CFT harder to calculate. This calculator covers fixed personal loans only.
By law, must my bank disclose the CFT?
Yes. In Argentina, BCRA regulations (Communication A 6323 and subsequent updates) require banks to disclose the CFT in all loan advertising and in the formal loan offer document (Oferta de Crédito). If a bank refuses to show the CFT, that is a red flag.
How does the loan term affect the CFT?
Longer terms lower your monthly payment but increase total interest paid, which typically raises CFT. Fixed monthly fees (insurance, admin) also compound over more months. Run the calculator at 12, 24, and 36 months to see the trade-off for your specific loan.
What if I want to compare two bank offers with different APRs and fees?
Run this calculator twice — once with each bank's numbers. Enter the APR and the monthly fees from each offer separately. The CFT result is directly comparable: the lower CFT wins, regardless of which bank had the lower headline APR.