Loan calculator
See how much you will pay each month for a personal, car or home-improvement loan, and how much it will cost in total.
Loan calculator: what it is and how it works
Personal loans are usually repaid in equal monthly instalments using the annuity method. Each payment contains interest, charged on the outstanding balance, and a share of principal. That is why you pay more interest at the beginning and more principal at the end.
This calculator gives you the monthly payment, the total interest and the total amount repaid. If the lender charges an arrangement fee, it also estimates the APR, the figure that lets you compare the real cost of different offers. You will also see the full month-by-month schedule.
How to use it
- Enter the amount you want to borrow and the nominal interest rate.
- Enter the term in months and, if any, the arrangement fee.
- Check the payment, the interest, the APR and the repayment schedule.
Payment = P × i ÷ (1 − (1 + i)^−n) · i = annual rate ÷ 12 ÷ 100Worked example
A €15,000 loan at 6.5 % over 60 months has a monthly payment of €293.49 and costs €2,609.53 in interest. With a 1 % arrangement fee, the APR rises from 6.70 % to 7.14 %.
Frequently asked questions
How is a loan payment calculated?
With the annuity formula: the principal times the monthly rate, divided by one minus the discount factor for the term. The calculator does it for you.
What is the difference between the interest rate and the APR?
The interest rate is the price of the money borrowed. The APR adds fees and payment frequency to show the true yearly cost. Compare loans by their APR.
Is a longer term better?
A longer term lowers the monthly payment but increases total interest considerably. Choose the shortest term whose payment you can comfortably afford.
Can I repay early?
Usually yes. Consumer credit rules allow early repayment, although the lender may charge a small fee. Paying early reduces future interest.