💳 Loan Calculator

A personal loan is repaid in fixed monthly instalments: the annuity. Enter the amount, rate and term to see your monthly payment and total interest cost.

%
years
Monthly payment 300,57 €
Total to repay 18 034,15 €
Total interest cost 3 034,15 €
Find the monthly rate: 7,5% ÷ 12 = 0,625%
Find the number of instalments: 5 × 12 = 60
Apply the annuity formula: = 300,57 €

Formula

M = P × i ÷ (1 − (1 + i)⁻ⁿ)

This is the same annuity formula used for a mortgage: you pay the same amount every month, with the interest share higher at first and falling over time as the repayment share rises.

What the variables mean

M
Monthly payment
P
Loan amount
i
Monthly interest rate
n
Number of monthly instalments

tips

  • Compare loans on total interest cost, not just the monthly payment.

warnings

  • Some loans charge origination fees or have a variable rate; this calculator assumes a fixed rate with no extra costs.

commonMistakes

  • Looking only at the monthly payment and ignoring total interest cost over the full term.
  • Choosing a longer term to lower the monthly payment, without realising total interest rises as a result.

useCases

  • Estimating the monthly payment on a personal loan for a car or renovation.
  • Comparing different terms before taking out a loan.