# Understand the Cost of Capital and Compare

### Let's first review a sample financing

##### \$ 57,500
* The Received Amount may be different than the Financing Amount if fees are deducted. In our example, a 2.5% Origination Fee was assumed.

### Use the following metrics to evaluate the financing

##### Interest Fee
The Total Repayment Amount Less The Financing Amount
##### Cents On The Dollar
Interest cents per dollar borrowed, exclusive of other fees
##### Total Cost Of Capital
Total interest and fees that are a condition to receive your capital

### Sample Financing Cost*

##### Interest Fee
Repayment Amount of \$57,500 less Financing Amount of \$50,000 = Interest Fee of \$7,500.
##### Cents On The Dollar
Interest Fee of \$7,500 divided by Financing Amount \$of 50,000 = Cents On The Dollar of \$0.15. Your Cents on the Dollar cost to secure this sample financing would be \$0.15 for every one dollar borrowed.
##### Total Cost Of Capital
Interest Fee of \$7,500 + Origination Fee of \$1,250 = Total Cost of Capital of \$8,750.
* The Received Amount may be different than the Financing Amount if fees are deducted. In our example, a 2.5% Origination Fee was assumed.