Loan calculator – estimate monthly payment

What the loan calculator shows

The loan calculator estimates the monthly payment for an annuity loan. The result shows the estimated monthly payment, loan amount, annual interest rate used, loan term, number of payments, total payment and total interest.

How to use the calculator

Enter the loan amount, annual interest rate and loan term in years. The calculator uses the values you enter. You can use either a comma or a dot in decimal numbers. Negative interest rates are not supported.

Loan amount, interest rate and term

The loan amount is the principal. The annual interest rate is converted to a monthly rate, and the loan term is converted to months by multiplying years by twelve. A longer term spreads the principal over more payments, but interest may be calculated over a longer period.

Calculation logic

The calculator uses the annuity loan formula. The monthly payment is estimated from the loan amount, monthly interest rate and number of payments. If the annual interest rate is 0%, the payment is calculated by dividing the loan amount evenly over the payments.

• Monthly interest rate = annual interest rate / 100 / 12.
• Number of payments = loan term in years x 12.
• Total payment = monthly payment x number of payments.
• Total interest = total payment - loan amount.

Examples

• A loan amount of 10,000, annual interest rate 4% and term 5 years gives an estimated monthly payment of about 184.17.
• In the same example, total payment is about 11,049.91 and total interest is about 1,049.91.
• At 0% interest, the monthly payment is the loan amount divided by the number of payments.

Costs that may not be included

Real loan cost can be affected by reference rates, margins, origination fees, account fees, billing fees, insurance, collateral, repayment method, future rate changes and lender-specific terms.

This calculator does not calculate an annual percentage rate and does not automatically include all fees, taxes, insurance costs or contract-specific terms.

Limitations and financial scope

The loan calculator is a general tool for estimating loan payments. It is not an official loan offer from a bank or lender, and it does not replace advice or assessment from a lender, financial institution or financial professional.

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