Loan Calculator
Estimate your monthly payment and total interest on a loan. Enter the amount, annual rate and term in months.
About the Loan Calculator
This calculator estimates the fixed monthly payment on an amortising loan, such as a personal loan, car loan or mortgage. It uses the standard annuity formula, converting your annual interest rate into a monthly rate and spreading the balance evenly across the full term so that the loan is fully paid off at the end.
How to use it
- Enter the loan amount you plan to borrow.
- Enter the annual interest rate as a percent, for example
5for five percent per year. - Enter the term in months, such as 60 for a five-year loan.
- See the monthly payment, the total repaid and the total interest cost.
It is a quick way to compare offers or check what you can afford before talking to a lender. The figures are an estimate: real loans may add arrangement fees, insurance or compounding rules that shift the true cost, so treat the output as a guide. All maths happens in your browser and nothing you type is uploaded.
Frequently asked questions
How is the monthly loan payment calculated?
It uses the amortisation formula M = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the amount, r is the monthly interest rate (annual rate divided by 12) and n is the number of months. Each payment covers interest first and reduces the principal over time.
Why is the total interest so high on long loans?
A longer term means more months of interest charged on the outstanding balance. Extending the term lowers the monthly payment but usually raises the total interest you pay over the life of the loan.
Does this include fees or insurance?
No. The estimate covers principal and interest only. Lenders may add arrangement fees, early repayment penalties or required insurance, so the real cost can be higher.
Can I use it for a mortgage?
Yes, for a fixed-rate repayment mortgage enter the loan amount, the annual rate and the term in months. For a 25-year mortgage that is 300 months.