Loan Payment Calculator
Equal-installment (amortized) monthly payment, total repayment and total interest.
How it works
Monthly = P × r ÷ (1 − (1+r)⁻ⁿ), r = annual ÷ 12, n = years × 12
An amortized loan has a fixed monthly payment; interest dominates early and principal later. It depends on principal, monthly rate and number of periods.
Total interest = monthly × periods − principal. The currency matches your input (any currency).
FAQ
Level payment vs equal principal, which is cheaper?
Equal-principal pays less total interest but heavier early payments; level payment is fixed monthly, lighter early, slightly more interest.
Worked example
Borrow 100,000 at 5% for 5 years (60 payments):
r = 0.05 ÷ 12 = 0.0041667, payment = 100000 × 0.0041667 ÷ (1 − 1.0041667⁻⁶⁰) ≈ 1,887.
Total paid ≈ 113,232 with ≈ 13,232 interest. Over 3 years the payment rises to ~2,997 but interest falls to ~7,900.
Notes and limitations
Excludes origination fees, account charges and insurance. If there is a prepayment penalty, add it back to the "interest saved" before comparing. Shorter loans cost less overall but pressure cash flow — weigh it against a payment-to-income ratio (keep it under 30%–35%).