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The Loan True-Cost Calculator

Many quick-loan apps quote a small-sounding monthly interest rate that hides a much larger true annual cost once it compounds — the same “APR” figure regulators require traditional lenders to disclose. This tool takes the monthly rate you were quoted and reveals what it actually costs per year, plus the total you'd repay on your specific loan. It's useful because a rate that sounds reasonable month-to-month can turn out to be a rate no regulated bank would ever be allowed to charge.

₦50,000
5,0001,000,000
5% / month
1%25%
3 months
124
The rate they quoted vs. the rate you're really paying
They said 5% a month
↓
79.6%
true annual rate
You borrow
₦50,000
You pay back, total
₦57,500
That's interest of
₦7,500
The lesson behind the number

A "small" monthly rate hides a huge annual one — that's the entire trick behind most quick-loan apps. Before you accept any loan, ask one question: what's the annual rate? If the lender won't say, do this math yourself first.

They quote monthly. We show you annual.

Rising Lion Money breaks down the real cost of every money move — loans, remittances, savings, markets. Free, every week.

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