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Finance & Loans

Loan Calculator

Monthly repayment, total interest and an amortisation schedule for any fixed-rate loan, mortgage or car loan.

Updated:

Result

Monthly payment

400.76

Total repaid
24,045.51
Total interest
4,045.51
Monthly rate
0.625%
Interest as a share of the amount
20.2%
Fixed rate, equal monthly instalments; arrangement fees, insurance and early repayment charges are not included. The last payment absorbs rounding.

In any currency; the result uses the same one.

The nominal rate, not the APR.

60 for 5 years, 300 for 25 years.

Amortisation schedule: first year, the last month of each year and the final payment
MonthPaymentPrincipalInterestBalance
Month: 1Payment400.76Principal275.76Interest125.00Balance19,724.24
Month: 2Payment400.76Principal277.48Interest123.28Balance19,446.76
Month: 3Payment400.76Principal279.22Interest121.54Balance19,167.54
Month: 4Payment400.76Principal280.96Interest119.80Balance18,886.58
Month: 5Payment400.76Principal282.72Interest118.04Balance18,603.86
Month: 6Payment400.76Principal284.49Interest116.27Balance18,319.37
Month: 7Payment400.76Principal286.26Interest114.50Balance18,033.11
Month: 8Payment400.76Principal288.05Interest112.71Balance17,745.06
Month: 9Payment400.76Principal289.85Interest110.91Balance17,455.21
Month: 10Payment400.76Principal291.66Interest109.10Balance17,163.55
Month: 11Payment400.76Principal293.49Interest107.27Balance16,870.06
Month: 12Payment400.76Principal295.32Interest105.44Balance16,574.74
Month: 24Payment400.76Principal318.25Interest82.51Balance12,883.54
Month: 36Payment400.76Principal342.96Interest57.80Balance8,905.79
Month: 48Payment400.76Principal369.58Interest31.18Balance4,619.24
Month: 60Payment400.67Principal398.18Interest2.49Balance0.00

How it's calculated

A fixed-rate loan is repaid in equal monthly instalments (an annuity). Each instalment first covers the interest on the outstanding balance for that month; the remainder reduces the balance. Because the balance falls, the interest share of each payment shrinks and the principal share grows. The annual rate is divided by 12 to get the monthly rate used in the formula.

Monthly rate r
= annual rate / 12
Payment
= Amount × r × (1 + r)^n / ((1 + r)^n − 1) n: months
Month's interest
= balance × r; principal = payment − interest; new balance = balance − principal

Worked example

20,000 at 7.5% a year over 60 months:

  1. Monthly rate: 7.5% / 12 = 0.625%
  2. Payment: 20,000 × 0.00625 × 1.00625^60 / (1.00625^60 − 1) = 400.76
  3. First month: interest 125.00, principal 275.76; total interest over the term 4,045.51

Monthly payment table

Monthly payment by amount and term at 7.5% a year
Amount12 months36 months60 months
Amount: 5,000.0012 months433.7936 months155.5360 months100.19
Amount: 10,000.0012 months867.5736 months311.0660 months200.38
Amount: 20,000.0012 months1,735.1536 months622.1260 months400.76
Amount: 50,000.0012 months4,337.8736 months1,555.3160 months1,001.90
Amount: 100,000.0012 months8,675.7436 months3,110.6260 months2,003.79

Frequently asked questions

What is the monthly payment on a 20,000 loan?

At 7.5% a year over 5 years the payment is 400.76 a month; you repay 24,045.51 in total, of which 4,045.51 is interest. Over 25 years at 6%, a 250,000 mortgage costs 1,610.75 a month and 233,227.39 in interest.

How is the monthly payment calculated?

With the annuity formula: Payment = Amount × r × (1 + r)^n / ((1 + r)^n − 1), where r is the monthly rate (annual rate / 12) and n the number of months. Each payment covers that month's interest first; the rest reduces the principal, so early payments are mostly interest and late ones mostly principal.

What is the difference between the interest rate and the APR?

The interest rate is what the lender charges on the balance; the APR (annual percentage rate) also spreads arrangement fees and compulsory insurance over the term, so it is the better figure for comparing offers. This calculator uses the interest rate only.

How much do I save by paying the loan off early?

You save the interest that would have accrued on the remaining balance. The schedule's "balance" column shows what you would owe after any month; some lenders charge an early repayment fee on top.

Why does a longer term cost more?

Interest accrues on the balance every month, so the longer the balance is outstanding, the more interest you pay. The same 20,000 at 7.5% costs 2,396.51 in interest over 3 years and 4,045.51 over 5, with a lower monthly payment.

Does the calculator work for mortgages and car loans?

Yes, for any fixed-rate loan repaid in equal monthly instalments. Variable-rate loans, interest-only periods, balloon payments and taxes on interest in some countries are not modelled; the country editions of this site cover local rules.

Fixed-rate annuity loan; fees, insurance, variable rates, taxes on interest and lender rounding are not modelled. Results are for guidance only.

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