Loan Calculator

How to calculate a loan payment

1. Enter the amount you want to borrow.
2. Enter the yearly interest rate and the term, in years or months.
3. Read the monthly payment and the total interest, and check the table to see how the balance goes down each year.

Frequently asked questions

How is the monthly payment worked out?

With the standard formula for a loan repaid in equal monthly amounts: payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount, r the monthly rate (yearly rate ÷ 12) and n the number of payments.

Why is more interest paid at the start?

Interest is charged on what you still owe. Early on the balance is highest, so more of each payment goes to interest; later, more goes to paying off the loan.

Does this include fees?

No. Arrangement fees, insurance and other charges are not included. Compare loans by their APR, which includes most fees.