Loan Calculator
Loan Calculator
Estimate your monthly loan payments, total interest, and total repayment amount. Adjust the loan amount, term, and interest rate to see how they affect your costs.
Formula Used
Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P = principal, r = monthly rate, n = number of payments.
About This Calculator
What It Does
Estimate your monthly loan payment, total interest, and total repayment amount. Adjust the loan amount, term in years, and annual interest rate to see how each factor affects your costs.
Worked Example
A 10,000 unit loan over 5 years at 5% annual interest: monthly payment ≈ 188.71 units. Over 60 payments, total repayment ≈ 11,322.60 units, meaning 1,322.60 units in total interest.
Real-World Usage
Use this before applying for a personal loan, car loan, or education financing. Compare different term lengths to see how a shorter loan saves on total interest but increases monthly payments.
Local Context
Consumer credit regulations vary by country. In the EU, lenders must display the Annual Percentage Rate of Charge (APR). In the US, lenders disclose APR under TILA (Truth in Lending Act). In the UK, the FCA regulates consumer credit. Always compare the total cost of credit — including interest and fees — not just the monthly payment.
Last reviewed: May 2026.
This is an estimate only and does not constitute a loan offer or commitment. Actual rates, terms, and payments may vary based on lender, credit score, and other factors.
Frequently Asked Questions
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus any fees or additional costs, giving a truer picture of the total loan cost.
How does the loan term affect my payment?
A longer term reduces your monthly payment but increases the total interest you pay. A shorter term costs more per month but saves you money overall.
What is amortization?
Amortization is the process of paying off a loan with fixed, regular payments. Early payments go mostly toward interest, while later payments go mostly toward the principal balance.