Loan calculator
Calculate monthly loan payment and interest.
Questions
What does this tool do?
The Loan calculator works out what a fixed-rate loan really costs. Enter the amount, the annual interest rate and the term in years or months, and it returns the monthly payment, the total interest over the life of the loan and the total amount repaid, using the standard amortising-loan formula a lender uses. Every figure updates as you type, so you can see what a lower rate, a bigger deposit or a shorter term does to the payment before you commit. It covers fixed-rate amortising loans; variable rates and balloon payments need a specialised tool.
What formula is used?
The standard amortising-loan formula: M = P × r(1+r)^n / ((1+r)^n − 1), where P is the principal, r the monthly interest rate (annual ÷ 12 ÷ 100) and n the number of monthly payments.
How is total interest computed?
Everything you will pay back over the life of the loan, minus the amount you borrowed.
What is not covered?
Variable-rate loans, balloon payments and adjustable-rate mortgages need a more specialised tool. This one handles fixed-rate amortising loans.