Loan calculator: monthly payment and total interest
Enter the loan amount, the annual interest rate and the term in months to see the fixed monthly instalment, the total interest and the total you will repay — plus how the balance falls over the first year.
Monthly payment
$888.49
Total interest
$661.85
Total repayment
$10,661.85
over 12 months
| Month | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $100.00 | $788.49 | $9,211.51 |
| 2 | $92.12 | $796.37 | $8,415.14 |
| 3 | $84.15 | $804.34 | $7,610.80 |
| 4 | $76.11 | $812.38 | $6,798.42 |
| 5 | $67.98 | $820.50 | $5,977.92 |
| 6 | $59.78 | $828.71 | $5,149.21 |
| 7 | $51.49 | $837.00 | $4,312.21 |
| 8 | $43.12 | $845.37 | $3,466.85 |
| 9 | $34.67 | $853.82 | $2,613.03 |
| 10 | $26.13 | $862.36 | $1,750.67 |
| 11 | $17.51 | $870.98 | $879.69 |
| 12 | $8.80 | $879.69 | $0.00 |
How to use it
- Enter the amount you are borrowing and your currency.
- Enter the annual interest rate (APR) and the number of months.
- Read the monthly payment, the total interest and the repayment schedule.
How the monthly payment is calculated
For a fixed-rate loan repaid in equal monthly instalments: payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the annual rate ÷ 12 ÷ 100, and n is the number of months. With a 0% rate the payment is simply P ÷ n.
Total repayment = payment × n, and total interest = total repayment − P. This is the same calculation the IncomeWise loan tracker uses for loans with interest.
Example
Borrowing 10,000 at 12% a year over 12 months gives a monthly payment of 888.49, a total repayment of 10,661.85 and 661.85 of interest.
Frequently asked questions
What is the difference between APR and the interest rate?
The interest rate is the cost of borrowing the money; APR also includes most fees, expressed as a yearly rate. If your lender quotes an APR, use it here for the closest estimate.
Does a longer term mean lower cost?
A longer term lowers the monthly payment but raises the total interest, because the balance stays higher for longer.
Does paying extra reduce the interest?
Yes. Extra payments reduce the balance that interest is charged on, so the loan ends sooner and costs less in total.
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