Loan Calculator
Work out the monthly payment on a personal loan, the total interest and how much interest and principal you pay each year.
Monthly payment
$298.82
Total interest
$2,929.09
Total repaid
$17,929.09
Nominal annual rate
7.25 %
Effective annual rate
7.5 %
Interest and principal per year
- Interest
- Principal
Show the table
| Year | Interest | Principal |
|---|---|---|
| 1 | $1,003 | $2,582 |
| 2 | $810 | $2,776 |
| 3 | $601 | $2,984 |
| 4 | $378 | $3,208 |
| 5 | $137 | $3,449 |
Total repaid, split
- Principal $15,000.00 83.7%
- Interest $2,929.09 16.3%
Total $17,929.09
Please note: This is an example calculation, not financial advice. Personal circumstances, changes in rules and rates, and additional costs are not included. If in doubt, talk to a financial adviser.
Fees outside the interest rate, extra payments and rate changes during the term are not included.
How this number is calculated
The blocks use your input. Change a value above and they update with it.
Step 1 · Monthly interest rate
Step 2 · Monthly payment
Step 3 · Total interest
Step 4 · Total repaid
How the calculation works
Work out the monthly payment on a personal loan, the total interest and the total amount you pay back. You also see, year by year, how much of your money goes to interest and how much to principal.
A personal loan is repaid in fixed monthly instalments: the same amount every month, made up of interest and principal. The interest for a month is the remaining balance times the monthly rate. At the start the balance is high and more goes to interest, later more and more goes to principal. With an effective rate, the monthly rate is chosen so that twelve months add up to exactly the annual rate; this is how the APR is quoted in the UK and the EU. With a nominal rate, the monthly rate is one twelfth of the annual rate, which is how US lenders usually quote the APR. The calculator uses formulas that give the same result as working through the schedule month by month.
Formula
Monthly rate r = (1 + annual rate ÷ 100)^(1/12) − 1 for an effective rate, or annual rate ÷ 12 ÷ 100 for a nominal rate. With n months: payment = amount × r ÷ (1 − (1 + r)^−n) and total interest = payment × n − amount. At 0% interest the payment is amount ÷ n.
Assumptions
- The interest rate stays the same for the whole term.
- Each payment is made at the end of the month, with no extra or missed payments.
- The loan is fully repaid by the end of the term.
- Fees outside the interest rate are not included. An APR that includes the required fees gives the most complete picture.
- The monthly payment and the totals are rounded to the cent, the yearly amounts to whole units of currency.
Example calculations
The button fills in the calculator above, so you can carry on from there.
-
15,000 over 5 years
Monthly payment
$298.82
Loan amount $15,000.00 · Annual interest rate (%) 7.5 · Effective · Term (months) 60
-
Car loan of 25,000
Monthly payment
$422.52
Loan amount $25,000.00 · Annual interest rate (%) 6.9 · Effective · Term (months) 72
-
Small loan of 5,000
Monthly payment
$229.52
Loan amount $5,000.00 · Annual interest rate (%) 9.9 · Effective · Term (months) 24
Frequently asked questions
What is the difference between an effective and a nominal rate?
With an effective rate, twelve months of interest add up to exactly the annual rate. With a nominal rate you pay one twelfth of the annual rate every month, which comes to slightly more over a full year. For 15,000 at 7.5% over 60 months the payment is 298.82 with an effective rate and 300.57 with a nominal rate.
Which rate type should I choose?
Choose effective if the lender quotes an APR in the UK or the EU, and nominal for most US loans. If you are not sure, check the loan agreement or ask the lender; the difference in the monthly payment is usually small.
How can I pay less interest?
Borrow less or choose a shorter term. 15,000 at 7.5% (effective) costs 2,929.09 in interest over 60 months and 1,736.39 over 36 months. The monthly payment is higher though: 464.90 instead of 298.82.
Can I repay the loan early?
Usually, yes. Some lenders charge a fee for early repayment; in the EU and the UK it is capped by law. This calculator follows the regular schedule without extra payments.
Does this work for a credit card or a line of credit?
No. Those have a minimum payment that changes with the balance, and the rate can change. This calculator is for a loan with a fixed term and a fixed monthly payment.
How exact is the result?
The result is the same as working through the schedule month by month. Lenders may round differently or charge interest per day, so their figures can differ by a few cents.
Last reviewed:
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