Loan payment calculator
Enter the loan amount, the interest rate and the term and see at once your monthly payment, how much interest you pay in total and how your remaining debt falls each year. Choose between annuity (fixed payment) and linear (falling payment).
The amount you borrow.
The yearly rate (nominal), for example 6.5.
In years or months, depending on your choice.
Fill in the fields; the answer appears here straight away.
How it's worked out
How it works
-
Enter the values
Type the numbers or the formula. Decimals may use a point or a comma. No idea? Click Fill in an example.
-
Instant answer
The answer appears as you type, with the most important intermediate values.
-
See the working
Under "How it's worked out" you see the steps, handy for checking your own calculation.
Annuity or linear?
- Annuity: you pay the same amount every month. At first most of it is interest, later mostly repayment. This is how most personal loans and mortgages work.
- Linear: you repay an equal amount of the loan every month, plus interest on what is left. The first payment is the highest and then it falls. You pay less interest in total.
An example
A loan of 25,000 at 6.5% interest a year over 5 years:
- Annuity: 489.15 a month, 4,349.22 in interest in total.
- Linear: 552.08 in the first month (416.67 repayment plus 135.42 interest), falling to about 419, and 4,130.21 in interest in total.
A loan of 200,000 at 4% over 20 years costs 1,211.96 a month as an annuity and 90,870.56 in interest.
How it is calculated
The monthly payment of an annuity is amount × r ÷ (1 − (1 + r) ^ −n), where r is the monthly rate (yearly rate ÷ 12) and n is the number of months.
Good to know
This is an indication with a fixed rate. Fees, insurance, tax and rate changes are not included, and lenders may calculate the interest differently. For a real loan, always check the lender's offer.
Annuity compared with linear
On 300,000 at 4% for 30 years:
| Annuity | Linear | |
|---|---|---|
| First payment | 1,432.25 | 1,833.33 |
| Last payment | 1,432.25 | 836.11 |
| Total interest | 215,608.52 | 180,500.00 |
The linear loan saves 35,108.52 in interest, but you must be able to afford 1,833.33 a month from the start.
A shorter loan
10,000 at 8% over 3 years costs 313.36 a month and 1,281.09 in interest in total. The shorter the term, the higher the payment and the lower the total interest, so the best term is the shortest one your budget can carry.
Before you sign
Check the offer for fees, insurance and the rate type, and see what extra repayments are allowed. For the other side of borrowing, saving at interest, use the compound interest calculator; to round amounts the way a bank does, see the rounding calculator.
Frequently asked questions
Which is cheaper, annuity or linear?
Linear costs less interest in total because you repay the loan faster at the start. On 300,000 at 4% for 30 years, linear costs 180,500 in interest and annuity 215,608.52. The price is a higher first payment: 1,833.33 against 1,432.25.
Is the interest rate here the same as the APR?
No. This calculator uses the nominal yearly rate. The APR also includes fees and other costs, so it is higher. Use the nominal rate quoted in the offer.
Can I enter the term in months?
Yes. Choose *Months* above the term field. 15,000 at 5% over 36 months is 449.56 a month.
What does the year table show?
For each year the total paid, the interest part of it and the debt that remains at the end. With an annuity the interest part falls each year and the repayment part rises.