Loan Calculator
Calculate your monthly loan repayments, total interest, and total repayment amount instantly. This free Loan Calculator supports multiple currencies and works for personal loans, car loans, business loans, and more.
How to Use
Enter your loan amount.
Enter the annual interest rate (%).
Enter the loan term and choose Years or Months.
Click Calculate Loan.
View your monthly payment, total interest, and total repayment amount.
Loan Planning Tool
Estimate your monthly loan payments, total interest and overall repayment cost based on the loan amount, interest rate and repayment term.
Example Calculation
This example demonstrates how the Loan Calculator works using sample figures. Enter your own loan amount, interest rate, and repayment term to receive a personalised estimate of your monthly payments, total interest, and total repayment.
Example Loan Calculation
Suppose you borrow £10,000 with an annual interest rate of 6.5% over a repayment period of 5 years.
Loan Details:
Loan Amount: £10,000
Annual Interest Rate: 6.5% per year
Loan Term: 5 years (60 monthly payments)
Estimated Results
Monthly Payment: £195.66
Total Interest Paid: £1,739.69
Total Repayment: £11,739.69
Although you borrowed £10,000, the total amount repaid over 5 years is £11,739.69.
The additional £1,739.69 represents the total interest charged over the life of the loan.
Your estimated monthly repayment is £195.66, helping you budget and plan your finances throughout the repayment period.
These results are estimates and may vary depending on lender fees, repayment schedules, compounding methods, additional charges, or changes to the interest rate.
Calculation Formula
How is the monthly loan payment calculated?
Our Loan Calculator uses the standard amortization formula, which is widely used by banks, lenders, and financial institutions to calculate fixed monthly loan repayments. The formula ensures that each monthly payment covers both a portion of the loan principal and the interest charged over the repayment period.
Formula
Monthly Payment Formula
M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]
What each symbol means
Symbol Meaning
M Monthly loan repayment
P Loan amount (principal)
r Monthly interest rate (Annual interest Rate ÷ 12 ÷ 100)
n Total number of monthly payments
Example
For a loan of £10,000 with an annual interest rate of 6.5% over a repayment period of 5 years:
Loan Details
Loan Amount (P): £10,000
Annual Interest Rate: 6.5%
Monthly Interest Rate (r): 0.065 ÷ 12 = 0.005417
Number of Payments (n): 60 months
Using the amortization formula, the estimated monthly repayment is:
£195.66 per month
Why this formula is used
The amortization formula ensures that every monthly payment covers:
A portion of the loan principal.
The interest charged for that month.
At the beginning of the loan, a larger part of each payment goes toward interest. As the balance decreases over time, more of each payment goes toward repaying the principal.
This results in a fixed monthly payment throughout the loan term (assuming the interest rate remains unchanged).
What Do These Results Mean?
Monthly Payment
The estimated amount you will pay each month over the loan term.
Total Interest
The total amount of interest you are estimated to pay in addition to the original loan amount.
Total Repayment
The estimated total amount you will repay over the full loan term, including the original loan amount and interest.
Number of Monthly Payments
The total number of monthly repayments required over the selected loan term.
Frequently Asked Questions
Is this Loan Calculator free to use?
Yes. The ToolNestPro Loan Calculator is completely free to use. You can calculate as many loan repayments as you need, with no registration or subscription required.
Does this calculator work for all countries?
Does this calculator include bank fees?
No. This calculator estimates repayments based on the loan amount, interest rate, and repayment term only. Bank fees, insurance, taxes, early repayment charges, and other lender-specific costs are not included.
Yes. This calculator can be used worldwide. Simply select your preferred currency, enter your loan details, and the calculator will estimate your monthly repayment, total interest, and total repayment amount.
How accurate is this calculator?
The ToolNestPro Loan Calculator uses the standard loan amortization formula used by banks and financial institutions to estimate fixed monthly repayments. While the calculations are accurate, your actual loan repayments may vary depending on your lender's terms, fees, repayment schedule, compounding method, and any additional charges.
Disclaimer
The results provided by this Loan Calculator are for informational and educational purposes only.
They are estimates based on the information you enter and should not be considered financial, legal, or professional advice.
Actual loan repayments may vary depending on your lender's terms, interest calculation method, fees, taxes, insurance, repayment schedule, and other applicable charges.
Always confirm loan details with your lender before making financial decisions.