Loan Calculator
Calculate monthly loan payments and total interest
Results are estimates for informational purposes only and do not constitute financial, legal, or medical advice.
Our free loan calculator lets you instantly estimate monthly payments for any personal or consumer loan. Enter the loan amount, annual interest rate (APR), and repayment term to get your monthly payment, total repayment amount, and total interest cost in seconds. A handy tool to compare multiple loan offers before committing.
The calculation uses the standard amortisation formula — the most common method for personal loans. Each monthly payment covers a portion of interest (calculated on the outstanding balance) and a portion of principal repayment. Always compare loans by APR, as it reflects the true annual cost including all mandatory fees.
Frequently Asked Questions about Personal Loans
How is the monthly loan payment calculated?
The monthly payment uses the annuity formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ–1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Our calculator performs this automatically as soon as you enter the three parameters.
What is APR (Annual Percentage Rate)?
APR is the annual cost of a loan expressed as a percentage, including interest and any mandatory fees. It is the most reliable figure for comparing loan offers, as it reflects the true total cost rather than just the nominal interest rate.
What is the difference between a personal loan and a mortgage?
A personal loan is an unsecured consumer credit (typically 3–84 months) with no requirement to state how the money is used. A mortgage finances property purchase over 10–30 years and is secured against the property. Mortgage rates are generally lower due to the collateral involved.
How can I reduce the total cost of my loan?
Three main levers: negotiate a lower interest rate, choose a shorter repayment term, or make early repayments when possible. A shorter term increases the monthly payment but significantly reduces the total interest paid over the life of the loan.
Can I repay a personal loan early?
In most countries, early repayment is a legal right. Some lenders charge an early repayment fee, but this is usually capped by consumer protection law. Check your loan agreement for the specific terms. Paying off a loan early reduces the total interest you pay.
Is a shorter or longer loan term better?
A shorter term means higher monthly payments but much less total interest. A longer term lowers the monthly payment but increases the total cost. For example, €10,000 at 6% over 24 months costs around €622 in interest, versus €1,561 over 60 months — 2.5 times more.
What are typical personal loan interest rates?
Rates vary by country, lender, loan amount, term, and borrower profile. Generally, personal loan rates range from around 4% to 15% per year. Online banks and credit unions often offer more competitive rates than traditional banks. Always compare APR, not just the nominal rate.
How do I compare loan offers effectively?
Always compare the APR (not the nominal rate), the total cost of credit, early repayment conditions, and any mandatory insurance. Our calculator displays the total repayment amount for each scenario, making it easy to compare different loan options side by side.
What is loan amortisation?
Amortisation is the gradual repayment of the loan principal over time. With a standard amortising loan, each monthly payment includes a declining share of interest and a growing share of principal. Early in the loan, most of the payment covers interest; later, most covers principal.
Does the calculator include loan insurance?
No. Our loan calculator computes monthly payments based on the interest rate you enter, without factoring in loan protection insurance. To simulate the full real cost, add your annual insurance rate to the interest rate you enter in the calculator.