Loan Calculator
Work out the repayment on any loan, see how much interest you pay over its life, and read the schedule showing where each payment goes.
How it works
Each repayment is split between interest on the balance you still owe and principal that actually reduces the debt. Because the balance falls over time, the interest share shrinks and the principal share grows — even though the payment itself stays the same.
That split is why the early years feel so slow. On a long loan the first payments are mostly interest, so paying a little extra at the start removes far more total interest than the same amount paid near the end.
The term matters as much as the rate. Stretching a loan lowers the monthly figure and raises the total cost, sometimes dramatically — the schedule below makes that trade visible rather than theoretical.
The formula
Repayment
PMT = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
r is the rate per period, n the number of periods.
Rate per period
r = annual rate ÷ 100 ÷ payments per year
Total interest
total interest = (PMT × n) − P
Interest in one payment
interest = outstanding balance × r
Worked examples
| Scenario | Working | Result |
|---|---|---|
| 25,000 over 5 years at 9% | 60 monthly payments | ≈ 519 a month, ≈ 6,137 interest |
| The same loan over 7 years | 84 payments, lower each | Lower monthly, more interest overall |
| First payment on a new loan | Balance × monthly rate | Mostly interest, little principal |
When you'd use it
- Comparing loan offers on total cost, not just the monthly figure
- Seeing what a longer term really costs
- Checking a lender's quoted repayment
- Planning an overpayment and seeing what it saves
Common questions
Why is so much of my early payment interest?
Interest is charged on what you still owe, and at the start that is almost the whole loan. As the balance falls the interest portion falls with it, so the same payment clears more principal each month.
Should I take the longer term for a lower payment?
Only if the monthly figure is genuinely unaffordable otherwise. A longer term always costs more in total — compare the total interest line, not the monthly one, before deciding.
Does this include fees and insurance?
No. It calculates principal and interest only. Arrangement fees, insurance and early-repayment charges vary by lender and are not modelled here, so treat the result as the loan cost rather than the full cost of borrowing.
What is the difference between this and the EMI calculator?
Nothing mathematically — EMI is the term used for the same equated instalment in several countries. Use whichever page's wording matches how your lender describes the loan.