Calculate your exact monthly repayment, total interest cost, and see a full month-by-month amortization schedule — instantly and for free.
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The formula used is the standard loan amortization formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1] — where M is your monthly payment, P is the principal (loan amount), r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (years × 12).
In the early months of a loan, most of your payment goes toward interest rather than reducing the principal. As the balance reduces over time, more of each payment goes toward the principal — this is the amortization effect.
Use the sliders or type directly into the fields to compare different loan amounts, rates, and terms. A longer term reduces your monthly payment but increases the total interest you pay. A higher interest rate significantly increases the total cost of borrowing over the life of the loan.
When you borrow money, you pay back more than you received. The extra amount is interest — the lender's charge for letting you use their money over time. This loan calculator shows the three things that matter most before you sign: your fixed monthly repayment, the total interest you will pay across the life of the loan, and a full amortisation schedule that breaks every payment into interest and principal.
The monthly repayment is worked out with the standard amortising-loan formula, which spreads the debt evenly so every payment is the same size. Early on, most of each payment goes toward interest because the outstanding balance is high. As the balance falls, more of each payment chips away at the principal. That is why paying a little extra in the first years of a loan saves far more interest than the same amount paid near the end.
Three levers control the cost of any loan: the amount borrowed, the interest rate, and the term. A longer term lowers the monthly payment but increases the total interest, because you are borrowing for longer. A shorter term does the opposite. Even a small difference in the annual rate can add up to a large sum over a multi-year loan, so it is always worth comparing offers on the rate rather than the monthly figure alone.
Suppose you borrow $10,000 over 3 years at 8% interest. Your monthly repayment works out to about $313, and you pay roughly $1,280 in total interest. Stretch the same loan to 5 years and the monthly payment drops to about $203 — but the total interest climbs to around $2,166. The longer term feels easier each month, yet it costs you nearly $900 more overall. That is the trade-off to weigh whenever a lender offers you a smaller monthly figure.
Does a lower monthly payment mean a cheaper loan?
No. A lower monthly payment usually means a longer term, which means you pay interest for more months and often more in total. Always compare the total interest, not just the monthly amount.
What is an amortisation schedule?
It is a table showing every payment split into interest and principal, along with the balance remaining after each one. It lets you see exactly when your loan crosses over from mostly-interest to mostly-principal.
Will paying extra each month help?
Yes. Extra payments go straight to the principal, reducing the balance that interest is charged on. This shortens the loan and can save a significant amount of interest over its life.