What does a loan of 10’000, 30’000 or 50’000 francs cost?
Compare illustrative monthly payments and total interest for different loan amounts and terms, with transparent assumptions and no implied offer.
Updated on · Budgetcredit
The amount, interest rate and term jointly determine the price
A loan does not simply cost the advertised percentage of the initial amount every year. With a typical instalment loan, outstanding debt falls with each repayment. Interest is calculated on the amount still financed. Instalments and total costs therefore require an amortisation model. The examples below illustrate these relationships and are not offers.
We assume an effective annual interest rate of 6 percent, equal monthly payments and the first payment after one month. There are no additional fees or payment protection insurance. All displayed amounts in francs are rounded; totals are calculated from unrounded instalments. An actual contract may differ slightly because of payment dates and rounding rules.
Six comparable financing examples
| Loan in francs | Months | Monthly instalment in francs | Repayment in francs | Interest cost in francs |
|---|---|---|---|---|
| 10'000 | 36 | 303 | 10'926 | 926 |
| 10'000 | 60 | 193 | 11'555 | 1'555 |
| 30'000 | 36 | 910 | 32'778 | 2'778 |
| 30'000 | 60 | 578 | 34'666 | 4'666 |
| 50'000 | 36 | 1'517 | 54'630 | 4'630 |
| 50'000 | 60 | 963 | 57'777 | 7'777 |
With the rate and duration unchanged, instalments and interest costs rise in proportion to the loan amount. Doubling the financing doubles both values in this model. In a real offer, the interest rate may also change because the provider reassesses the whole situation. Proportional calculation therefore applies only under identical conditions.
Comparing terms reveals the actual trade-off: more time reduces the monthly payment but increases total interest. A smaller instalment is not a price reduction. It spreads repayment over more months and keeps the debt outstanding longer. This should fit the useful life of the purchase and your future expenses.
How to follow the calculation
In this model, the effective annual rate is first converted into an equivalent monthly rate: the twelfth root of the annual factor, minus one. The constant instalment is then determined so the outstanding balance is fully repaid at the end of the chosen number of months. Total repayment minus the loan amount gives the interest cost.
A common mistake is simply multiplying the annual rate by the original amount and the whole term. This ignores ongoing repayment of principal and overstates interest on an amortising loan. Conversely, a calculation without an interest component understates the monthly commitment. Ask for a clear payment schedule if an offer’s figures seem unclear.
Why your interest rate may differ
Your creditworthiness and the provider’s terms determine the offered rate. An advertised minimum is not automatically available to everyone. The 6 percent used here is solely for comparison. Read more in Loan interest and creditworthiness.
Since January 2026, the statutory ceiling for cash loans within the Consumer Credit Act (KKG) has been 10 percent; for overdraft credit it is 12 percent. These limits are neither recommended prices nor an entitlement to approval. The applicable legal position must be checked separately for existing agreements and financing outside the KKG.
An apparently affordable instalment does not establish statutory affordability
The table answers a cost question. It does not say whether you can obtain the loan concerned. For cash loans within the KKG, affordability assumes amortisation within 36 months even if the contract runs longer. A low instalment achieved through a long term therefore cannot simply offset insufficient borrowing capacity.
Your personal budget also needs room for irregular expenses. Account for taxes, insurance bills, repairs and existing commitments. Check whether a smaller amount already covers the essential need. Your decision should start from the financing’s usefulness, not the largest figure in a table.
Always compare actual offers using the same loan amount, duration and additional benefits. Optional insurance must remain visible as a separate cost item. Our article A longer or shorter loan term provides the relevant decision criteria.
Frequently asked questions
Are the table figures an offer from Budgetcredit?
No. They are model calculations using explicitly assumed conditions. An individual offer requires an assessment.
Why does the rounded instalment multiplied by the term not exactly match the total?
The total is calculated using the unrounded model instalment. Displaying whole francs may therefore create a rounding difference.
Is a longer term cheaper?
At the same rate, it lowers the monthly instalment but increases total interest costs in this model.
Sources and information date
Information as of 13 October 2026. The applicable rules, individual assessment and contract documents are decisive.
- Consumer Credit Act, Art. 6, 9, 28 and 33–34
- Federal Office of Justice: maximum interest rates from 2026
Credit must not be granted if it would lead to over-indebtedness. A budget calculation provides a non-binding indication, not a loan offer.
