About the Loan Calculator
Before taking out a mortgage, car loan or personal loan, it helps to know exactly what you will pay each month and how much the loan will cost in total. This calculator works out the fixed monthly payment for a standard amortizing loan (also known as an annuity loan or EMI), the total interest over the life of the loan, and a year-by-year schedule showing how much of each year's payments goes to interest and how much repays the balance. Results are estimates: lenders may add fees, insurance or use different compounding rules.
How to use it
- Enter the amount you want to borrow.
- Enter the yearly interest rate offered by the lender.
- Enter the length of the loan in years or months, and optionally choose a currency.
- Read the monthly payment and total cost, and download the repayment schedule as a CSV file for your spreadsheet.
Frequently asked questions
How is the monthly payment calculated?
It uses the standard annuity formula: payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the monthly interest rate (yearly rate ÷ 12) and n is the number of monthly payments.
Why do I pay more interest at the beginning?
Interest is charged on the remaining balance. At the start the balance is highest, so a larger share of each payment goes to interest. As the balance falls, more of each payment repays the principal.
How can I reduce the total interest I pay?
Choose a shorter term, negotiate a lower rate, borrow less, or make extra payments when your lender allows it. Even a small reduction in rate can save a lot over a long mortgage.