Loan Calculator
For a cash loan when the borrowed amount is already known.
Monthly payment, total cost and interest for any loan.
Both use similar payment mathematics, but the mortgage calculator starts from property value and down payment.
For a cash loan when the borrowed amount is already known.
For property finance based on property price and down payment.
Open calculatorA loan calculator answers the three questions every borrower has before signing: how much will I pay each month, how much will the loan cost in total, and how much of that total is pure interest. Enter the amount you want to borrow, the annual interest rate the lender quoted, and the repayment period in years — the calculator does the rest instantly.
The calculator uses the standard amortization formula used by banks worldwide. It converts the annual rate to a monthly rate, spreads repayment over the total number of monthly installments, and produces a fixed monthly payment where early payments are mostly interest and later payments are mostly principal.
M is the monthly payment, P is the loan amount, i is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments (years × 12).
Borrowing 50,000 at 6% annual interest over 5 years: the monthly rate is 0.5% and n is 60 payments. The formula gives a monthly payment of about 966.64. Over the full term you repay roughly 57,998 — meaning the loan costs you about 7,998 in interest on top of the 50,000 you borrowed.
Yes — a shorter term means fewer months accruing interest, so total interest drops significantly. The trade-off is a higher monthly payment, so choose the shortest term whose payment still fits your budget comfortably.
The interest rate covers only the cost of borrowing the principal. APR (annual percentage rate) also folds in fees such as origination or administration charges, so it is usually slightly higher and is the better number for comparing offers.
Many banks advertise a flat rate, where interest is charged on the full original amount every year — a 2% flat rate over 5 years means 10% total interest regardless of repayments. The standard reducing-balance method charges interest only on what you still owe, so the same nominal rate costs roughly half as much. Use the method selector above to match your bank's quote; a 2% flat rate is equivalent to about 3.9% reducing.
Yes. Any fixed-rate loan repaid in equal monthly installments — car loans, personal loans, student loans — follows the same amortization formula.
These sources are used to verify terminology, formulas, and information related to this calculator.