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Total payment
Loan Calculator with Monthly Payment Breakdown
Fixed monthly payments keep loan repayments predictable. This loan calculator computes the monthly payment (sometimes called an EMI, or equated monthly instalment) for a given principal, annual rate and term, then shows how much of the total outflow is interest versus principal. Use it before signing to compare offers and to understand the true cost of borrowing over the full term.
Please enter a positive amount, rate and term.
Monthly payment
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Total interest
How to Use the Loan Calculator
- Enter the loan amount you plan to borrow.
- Input the annual interest rate and the loan term in years.
- Calculate the monthly payment, total payment and total interest.
- Review the interest share before choosing a longer term for a lower monthly payment.
Enter the amount you want to borrow, the yearly interest rate and the term in years. For a term shorter than a year, use a decimal, for example 0.5 for six months. The calculator shows the monthly payment, the total payment and the total interest. Open the amortization table to see how each payment splits between interest and principal. To compare two loans, run the calculation twice: the shorter term has the higher payment but costs less interest.
Loan Calculator Formula Explained
Monthly payment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
P is principal, r is the monthly interest rate (annual rate ÷ 12 / 100), and n is the number of monthly payments. Each monthly payment is fixed, but the split between interest and principal changes every month as the outstanding balance falls. Early payments are interest-dominant; later payments are principal-dominant. Total interest is (monthly payment × n) − P.
The calculator turns the yearly rate into a monthly rate (rate ÷ 100 ÷ 12) and the term into months (years × 12). It then solves for the one fixed payment that clears the balance at the end of the term. The rate you enter is the plain yearly interest rate, not an APR, so fees and other charges are not included. In the amortization table, the last row absorbs any rounding so the balance ends at zero.
Loan Calculator Example Calculation
A €15,000 loan at a 7% yearly interest rate over 3 years has a fixed monthly payment, and the total interest is higher than over 2 years. Stretching the same loan to 5 years lowers the monthly payment but raises total interest by about 70%. That is worth seeing before you choose the longer, more “affordable-looking” term. When you compare offers, look at the monthly payment and the total interest together.
Worked example: borrow €15,000 at 7% for 3 years (36 payments). The monthly payment is €463.16, the total payment is €16,673.63 and the total interest is €1,673.63. Over 2 years the payment is €671.59 and the interest is €1,118.13. Over 5 years the payment drops to €297.02, but the interest grows to €2,821.08.
When to use this tool
Use this before accepting personal, consumer or small-business credit so monthly affordability and lifetime interest are visible side by side.
Key Features & Benefits of This Loan Calculator
- Full interest vs. principal breakdown — see exactly how much of each payment goes to interest versus paying down the loan.
- Works for any loan type — personal, consumer or small-business credit, in months or years.
- Free and instant — no sign-up, no app download, results update the moment you calculate.
- Compare tenures side by side — recalculate with a different term to see the total-interest trade-off before you commit.
Good to know
Early repayment rights and fees differ from lender to lender and from country to country. If you plan to overpay, check the contract before assuming interest savings equal the simple model.
Loan Calculator — FAQs
What is the difference between the interest rate and the APR?
The interest rate is the cost of borrowing the money. The APR (annual percentage rate) also includes certain mandatory fees, so it is the better figure for comparing offers. Some lenders advertise a flat rate, which charges interest on the original amount for the whole term and so looks lower than the real cost. This calculator uses the reducing-balance method, which charges interest only on the amount you still owe.
Can I prepay without penalty?
That depends on the loan agreement. Prepayment usually reduces total interest; check fees before assuming it is free.
Does a lower monthly payment always mean a better loan?
Not if the term is stretched so far that total interest rises sharply. Compare both the monthly payment and total interest across offers.
Does the monthly payment stay the same for the whole loan term?
Yes, for a standard reducing-balance loan the monthly payment is fixed for the full term. What changes each month is the split — early payments are interest-heavy, later payments pay down more principal.
Sources and review
Sources last checked: . These sources give the background for this calculator. They are general information, not financial advice.
- Your Europe: Consumer credits and loans: the standard information form lenders must give you, the annual percentage rate (APR), the 14-day right to withdraw and early repayment.