Loan Payment Calculator
Monthly payment, total interest and total cost for any loan — annuity formula, instant result.
Quick answer: Monthly payment, total interest and total cost for any loan — annuity formula, instant result.
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Frequently asked questions
- How do I calculate the monthly payment of a loan?
- Enter the loan amount, the annual interest rate, and the term in years. The tool computes the equal monthly payment using the standard annuity formula — the same one banks use.
- What is an annuity loan?
- An annuity loan has equal monthly payments for the entire term. Each payment covers part interest and part principal — the principal share grows over time as the remaining balance shrinks.
- What's the difference between annuity and linear repayment?
- Annuity payments are constant; the interest share starts high and falls. Linear payments split the principal evenly so the total payment starts high (lots of interest) and falls every month. This calculator models annuity loans.
- How much total interest will I pay?
- The "Total interest" line is total amount paid minus the principal — the cost of borrowing over the full term.
- What does a higher interest rate do to my monthly payment?
- It raises the monthly payment because more of each payment goes to interest. Try doubling the rate and see — the payment goes up, but not exactly double, because the principal portion shrinks too.
- Can I include extra repayments?
- Not in this calculator — it shows the standard annuity payment over a fixed term. Many banks let you make extra payments any time; doing so reduces the remaining balance and total interest.
- How do I work out the term if I know the monthly payment?
- This tool solves for the monthly payment, not the term. As a rule of thumb: a higher monthly payment shortens the term roughly proportionally for low rates, less so for high rates.
- How accurate is this calculation?
- The math is the same formula banks use, with monthly compounding. Real bank quotes may differ by cents due to day-count conventions and fees, but the result is accurate enough for budgeting.
- Can I export an amortisation schedule?
- Not in this tool — it focuses on the headline payment. Use the "Copy result" button to drop the summary into a spreadsheet or email.
- Does this work for mortgages?
- Yes. A mortgage is just a long-term loan; enter the principal, your fixed annual rate, and the term in years (e.g. 30) to see the monthly payment.