Loan Payment Calculator
Enter a loan amount, annual interest rate and term in years to estimate the monthly payment, the total you'll repay, and the total interest. The figures work in any currency.
How loan repayments are calculated
Most loans are repaid in equal monthly instalments using an amortisation formula. Each payment covers the interest due that month plus a slice of the principal, so early payments are mostly interest and later ones mostly principal.
The monthly payment depends on three things: the amount borrowed, the interest rate, and the length of the loan. A longer term lowers the monthly payment but increases the total interest you pay.
Using the results wisely
Compare the total interest across different terms — stretching a loan out can quietly double the interest cost. Even a small increase in your monthly payment can shorten the loan and save a lot.
This is a general estimate. Real loans may include fees, insurance or a different compounding method, so always check the lender's official figures before signing.
Frequently asked questions
How is a monthly loan payment calculated?
It uses the standard amortisation formula based on the loan amount, the monthly interest rate, and the number of monthly payments. Enter your figures above for an estimate.
Does a longer loan term cost more?
Usually yes. A longer term reduces the monthly payment but means you pay interest for longer, increasing the total cost of the loan.