Loan Calculator
Estimate your monthly repayment on a loan or mortgage, along with the total interest and the total amount you will pay over the term.
Loan details
Result
Enter your loan amount, interest rate and term to see your estimated payment.
How the loan calculator works
This calculator uses the standard amortisation formula used by most lenders to spread a loan evenly across monthly payments. Enter a rate of 0 for an interest-free loan. The figures are estimates for planning and do not include arrangement fees, insurance or other charges.
- The monthly payment stays the same across the whole term.
- Total interest shows the extra cost of borrowing over the term.
- Shortening the term usually raises the monthly payment but lowers total interest.
Frequently asked questions about loans
How is the monthly loan payment calculated?
The calculator uses the standard amortisation formula, which spreads the loan and its interest evenly over every month so the payment stays the same for the whole term.
Does a longer loan term lower my payment?
Yes. Stretching the term over more years reduces the monthly payment, but you pay interest for longer, so the total interest over the life of the loan is usually higher.
What is the difference between the interest rate and the APR?
The interest rate covers only the cost of borrowing, while the annual percentage rate (APR) also includes fees and charges, so the APR is a more complete measure of the true cost.