Advertisement 728×90
Advertisement 320×50

Loan Repayment Calculator

Calculate monthly repayments, total interest, and see a full amortisation schedule for any loan.

Also try: Mortgage Calculator · Compound Interest Calculator
Advertisement 300×250
Advertisement 728×90
Quick Answer

Enter your loan amount, annual interest rate, and term. Click Calculate to see your monthly payment, total interest, and total amount repaid — plus a full amortisation schedule showing every payment.

How loan repayments are calculated

This calculator uses the standard amortisation formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. The result is a fixed monthly payment that pays off the loan exactly by the final month.

Understanding amortisation

With an amortising loan, your payment is fixed, but the split between principal and interest changes every month. In the early months, most of your payment is interest. As the balance falls, more of each payment goes toward principal. This is why the amortisation schedule is so valuable — it shows exactly where your money goes each month.

How to reduce total interest paid

Three strategies reduce the total interest you pay: (1) Get a lower interest rate. (2) Make a larger deposit to reduce the principal. (3) Make extra repayments. Even small additional monthly payments reduce the principal faster, which reduces future interest. If your loan allows it, this is the most effective way to save on borrowing costs.

Frequently asked questions

How is a loan repayment calculated?

Monthly repayments use the formula M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is principal, r is monthly interest rate, and n is number of months. Each payment covers that month's interest plus some principal.

What is amortisation?

Amortisation is the process of paying off a loan through regular equal payments. Early payments mostly cover interest; later payments mostly reduce principal. By the final payment, almost everything goes toward principal.

Does paying extra reduce my loan faster?

Yes. Any extra payment goes directly to reducing principal, which reduces future interest. Even small regular overpayments can significantly shorten your loan term and reduce total interest paid.

What is the difference between APR and interest rate?

The interest rate is the cost of borrowing, without fees. APR (Annual Percentage Rate) includes the interest rate plus any additional fees, giving a more complete picture of the true cost of a loan.