Loan & Mortgage Calculator
Calculate monthly repayments, total interest, and total cost for any loan or mortgage.
Results are for general guidance only — not professional advice. Learn more.
How to use this tool
Enter your loan details to calculate your monthly repayment and total cost of borrowing. Results update as you type.
- Enter the Loan Amount — the total sum you are borrowing.
- Enter the Annual Interest Rate as a percentage.
- Enter the Loan Term in years (up to 30).
- Read off your Monthly Repayment, Total Interest Paid, and total repayment amount.
- Click Show amortisation schedule to see a month-by-month breakdown of every payment split into principal and interest.
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Frequently asked questions
How is a loan monthly repayment calculated?
Monthly repayments are calculated using the annuity formula: M = P × [i(1+i)^n] / [(1+i)^n - 1], where P is the loan principal, i is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This ensures the loan is fully repaid over the term with equal monthly payments.
What is the difference between the interest rate and APR?
The interest rate is the basic cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus any additional fees and charges, giving a fuller picture of the true cost of a loan. Always compare APR when shopping for loans, not just the headline interest rate.
Does paying off a loan early save money?
Yes, paying off a loan early reduces the total interest you pay because interest accrues on the outstanding balance. The sooner you reduce the principal, the less interest accumulates. However, some lenders charge early repayment fees, so check your loan agreement before making overpayments.
What is an amortisation schedule?
An amortisation schedule is a table showing each loan payment broken down into the principal and interest portions. In the early months of a loan, a larger share of each payment goes towards interest. Over time, as the principal reduces, the interest portion decreases and more of each payment goes towards repaying the principal.