Loan Calculator
See what a loan will cost each month and over its whole life.
How the payment is worked out
Most personal, car and student loans are repaid in equal monthly instalments. Each payment covers that month’s interest first, and what is left reduces the balance. Early payments are mostly interest, later ones mostly principal.
The formula
Payment = L × r ÷ (1 − (1 + r)−n), where L is the amount borrowed, r is the monthly rate (yearly rate ÷ 12) and n is the number of monthly payments.
Example
A 20,000 loan at 7% over 5 years has a payment of about 396.02 a month. Over 60 payments you repay roughly 23,761, so the interest is about 3,761.
Ways to pay less
- A shorter term raises the payment but cuts the total interest sharply.
- Even a small rate reduction adds up over the term, so compare offers by total cost, not just the monthly figure.
- Fees, insurance and early repayment charges are not included here.
Frequently asked questions
Does this include fees?
No. It covers principal and interest only. Add arrangement fees, insurance or other charges separately, and compare the APR a lender quotes.
Can I see the full repayment schedule?
Yes. Use the amortization calculator to see each year or month, and to test extra payments.
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