1. What is Cost Per 1000 Financed?

The Cost Per 1000 Financed is a standardized way to compare loan costs by showing the monthly payment amount per $1,000 of loan amount. This metric helps borrowers compare different loan options more easily.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Monthly Payment — Your total monthly loan payment in USD
• Loan Amount — The total amount being financed in USD

Explanation: This calculation standardizes loan costs to a per-$1,000 basis, making it easier to compare loans of different amounts.

3. Importance of Cost Per 1000 Calculation

Details: This metric is particularly useful when comparing mortgage options or other loans, as it removes the variability of loan amount and focuses purely on the cost structure.

4. Using the Calculator

Tips: Enter your monthly payment amount and total loan amount in USD. Both values must be greater than zero for the calculation to work.

5. Frequently Asked Questions (FAQ)

Q1: Why use cost per 1000 instead of just monthly payment?
A: It allows for easier comparison between loans of different amounts by standardizing the cost to a per-$1,000 basis.

Q2: How does this relate to interest rate?
A: While related, cost per 1000 includes all payment components (principal, interest, insurance, taxes) giving a more complete picture than interest rate alone.

Q3: What's a good cost per 1000 value?
A: This depends on current interest rates and loan terms. Lower values indicate less expensive loans.

Q4: Can I use this for different loan types?
A: Yes, this calculation works for any type of loan (mortgage, auto, personal, etc.).

Q5: Does this account for loan term length?
A: Indirectly, as longer-term loans typically have lower monthly payments for the same amount financed.