How to use the Loan Calculator
- Enter the loan amount, the yearly interest rate and the term in years or months.
- Read the monthly payment, total interest and total cost.
- Add an extra monthly payment to see how much sooner you'd finish and how much interest you'd save.
- Open the schedule to see every payment, by year or by month.
How the payment is calculated
For a standard fixed-rate loan, each monthly payment is the same and is worked out with the amortization formula:
payment = P × r / (1 − (1 + r)^−n) P = amount borrowed, r = yearly rate ÷ 12, n = number of payments
Early payments are mostly interest, because interest is charged on the whole balance. As the balance falls, more of each payment goes towards the loan itself.
Extra payments make a big difference
Every extra amount goes straight to the balance, so you pay less interest from then on. On a 5-year loan, even a small extra payment each month can take months off the loan. Check first that your lender doesn't charge an early repayment fee.
Flat rate vs reducing balance
Some lenders, especially for car loans and personal loans in Asia, quote a flat rate: interest is charged on the original amount for the whole term. A 5% flat rate costs much more than a 5% reducing-balance rate (roughly 9% effective). Choose Flat rate to compare.
These figures are estimates for planning. Your lender's offer may include fees, insurance or different rounding, so always check the official quote.
Frequently asked questions
What's the monthly payment on a 1,000,000 loan at 6% for 5 years?
About 19,333 a month, with about 160,000 in total interest.
Does it work for car loans and mortgages?
Yes, for any fixed-rate loan with equal monthly payments. Property taxes and insurance in a mortgage payment aren't included.
Does it work with my currency?
Yes. Enter amounts in any currency.
Is this financial advice?
No. It's a calculator for planning. Compare real offers, including fees, before you borrow.
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