Loan Payment Calculator
Estimate the regular repayment for a fixed-rate loan, the total interest you would pay, and how each payment splits between interest and principal.
Result
Enter your values and select Calculate to see the result.
How to use this calculator
- Enter the loan amount, the annual interest rate and the term in years.
- Choose how often you pay.
- The result shows the regular payment, total interest and total repaid, with a yearly summary and an expandable full schedule.
Formula
payment = P × i ÷ (1 − (1 + i)^−N)
where P is the loan amount, i the interest rate per payment (annual rate ÷ payments per year) and N the total number of payments.
For a zero-interest loan the formula is undefined, so the payment is simply P ÷ N.
Each payment first covers the interest on the remaining balance (balance × i) and the rest reduces the balance.
Worked example
25,000 over 5 years at 6.5%
Monthly rate: 6.5% ÷ 12 ≈ 0.5417%. Number of payments: 60.
Monthly payment: 489.15. Total repaid: 29,349.22, of which 4,349.22 is interest.
In the first month, 135.42 goes to interest and 353.74 to the balance.
A zero-interest loan
1,200 over 12 monthly payments at 0% is 100 a month with no interest.
Assumptions and limitations
- This is an estimate. It assumes a fixed rate and equal payments, and excludes fees, insurance, taxes and any rate changes.
- The annual rate is treated as a nominal rate divided evenly across payments. Lenders may quote an APR that includes fees or use different day-count rules.
- The final payment is adjusted so the balance reaches exactly zero.
Frequently asked questions
Do bi-weekly payments save interest?
Paying every two weeks means 26 half-payments a year, the equivalent of 13 monthly payments, so the loan is repaid sooner with less interest. This calculator models a loan whose term is set by the number of years you enter.
Why is so much of the early payment interest?
Interest is charged on the remaining balance, which is highest at the start. As the balance falls, more of each payment goes towards the principal.