Work out your repayments and the true cost of borrowing
A loan repayment calculator shows what you pay each period and what the loan costs in total. Enter the loan amount, the annual interest rate (called Finance Cost % here) and the term. You get your payment, total repayment, total interest and a full amortisation (payment-by-payment) schedule. It is free and needs no sign-up.
The calculator uses the standard fixed-payment (annuity) formula. Every payment is the same size, and each one covers the interest on the balance that is still owed plus a slice of the original amount borrowed (the principal).
Payment = Loan Amount x r x (1 + r)^n / ((1 + r)^n - 1)
Here r is the annual rate divided by the number of payments per year (12 for monthly, 26 for fortnightly, 52 for weekly, 1 for annual), and n is the total number of payments. If the rate is 0%, the payment is simply the loan amount divided by n. Total repayment is the payment multiplied by n, and total finance cost (interest) is the total repayment minus the loan amount.
With monthly payments, r = 6.5% / 12 = 0.5417% and n = 60. The payment is $489.15 a month. Over 60 payments you repay $29,349.22 in total, so the loan costs $4,349.22 in interest.
In the first month, $135.42 of the $489.15 payment is interest ($25,000 x 0.5417%) and the remaining $353.74 reduces the balance. Because the balance falls each month, the interest share shrinks and the principal share grows.
An amortisation schedule lists every payment with its interest portion, principal portion and the balance left afterwards. The calculator shows the first 12 payments and lets you expand the table to see them all. The final payment is adjusted so the balance finishes at exactly $0.
It assumes a fixed rate and equal payments for the whole term. Arrangement fees, insurance, early repayment charges and variable-rate changes are not included, and lenders that quote an effective rate such as an APR (annual percentage rate) may show slightly different figures. Use it for planning, then confirm exact figures with your lender.
Divide the annual rate by the number of payments per year to get r, then apply Payment = Loan Amount x r x (1 + r)^n / ((1 + r)^n - 1), where n is the total number of payments. The calculator does this for you as soon as you enter the loan amount, rate and term.
Total interest is your payment multiplied by the number of payments, minus the amount you borrowed. For a $25,000 loan at 6.5% repaid monthly over 5 years, that is $29,349.22 - $25,000 = $4,349.22. The calculator shows this as Total Finance Cost.
It is a table showing each payment split into interest and principal, with the remaining balance after each one. Early payments are mostly interest; later payments are mostly principal. The calculator shows the first 12 payments and can expand to the full schedule.
Yes. The Loan Term field accepts either years or months, so a 36-month loan can be entered as 36 months or 3 years. You can also switch the payment frequency between monthly, fortnightly, weekly and annually.
No. It calculates repayments from the loan amount, the annual interest rate, the term and the payment frequency only. Fees, insurance and early repayment charges are not included, so check your lender's full quote before you commit.
Yes. It is free to use, and you do not need to create an account to run it.
Built by Shihan Sheriff, FCMA (Fellow Chartered Management Accountant), VP of Finance at Nomod (a Y Combinator-backed fintech), CFO at Esanjo Ventures and founder of Money Master HQ (SS Coaching, LLC). Results are estimates for planning, not financial advice.