Loan Calculators
Loan Payment Calculator
This works for any fixed-rate instalment loan — personal, home improvement, consolidation or student. Add an optional extra monthly payment to see how much interest early repayment saves.
Monthly payment
$525.05
- Scheduled payment
- $525.05
- Total interest
- $6,503
- Total repaid
- $31,503
- Time to clear the loan
- 60 months
- Interest saved by paying extra
- $0
- Interest
- Principal
The interest share of each payment shrinks as the balance falls.
Repayment schedule — yearly
| Year | Interest paid | Principal paid | Balance remaining |
|---|---|---|---|
| 1 | $2,199 | $4,101 | $20,899 |
| 2 | $1,792 | $4,508 | $16,391 |
| 3 | $1,345 | $4,956 | $11,435 |
| 4 | $853 | $5,447 | $5,988 |
| 5 | $313 | $5,988 | $0 |
How this calculator works
M = P × r ÷ (1 − (1 + r)^−n)
- M
- the scheduled monthly repayment
- P
- the amount borrowed
- r
- the monthly interest rate (annual rate ÷ 12)
- n
- the number of monthly repayments
Extra payments are applied straight to the balance, which shortens the term rather than reducing the payment.
Example calculation
Illustrative example — not advice
If you borrow $25,000 at 9.5% over 5 years
- 01The monthly rate is 9.5% ÷ 12 = 0.7917%.
- 02There are 60 scheduled repayments.
- 03The formula gives a repayment of about $525 a month.
About $525 a month, and roughly $6,500 of interest over the five years.
Adding $100 a month clears the same loan about ten months early and cuts the interest bill by several hundred dollars. This is an illustrative example only.
Important considerations
- Advertised rates are usually the best available rate; your offer depends on your credit profile.
- Arrangement or origination fees are not included and can add meaningfully to the cost.
- Some lenders charge early repayment penalties, which can offset the saving from paying extra.
Related calculators
- Mortgage CalculatorEstimate your total monthly mortgage payment and see the amortisation schedule.
- Auto Loan CalculatorMonthly vehicle payment after deposit, trade-in, tax and fees.
- Compound Interest CalculatorProject the growth of a balance with compounding and regular contributions.
- Retirement CalculatorProject your retirement balance and the income it could sustain.
- Personal Loan CalculatorRepayments and total interest on an unsecured personal loan.
- Student Loan CalculatorStudent loan repayments, interest and payoff timing.
Learn more
Personal Loan Eligibility: What Lenders Actually Check
Credit history, debt-to-income ratio, and documentation requirements, explained without jargon.
Fixed vs. Variable Mortgage Rates: A Side-by-Side Comparison
How rate structure affects monthly payments, total interest, and the risk you carry over a full loan term.
Terms used here
Frequently asked questions
Does paying extra reduce my monthly payment?
Usually not. On most instalment loans the payment stays the same and the extra reduces the balance, so the loan clears earlier and costs less in total interest.
What is the difference between the interest rate and the APR?
The interest rate covers only the interest charged. The APR also folds in fees, so it is the better figure for comparing offers.
Disclaimer
Calculator results are estimates for informational purposes only and may differ from actual rates, fees, taxes, terms or a lender's own calculations. Legamoney does not provide financial advice.
Last reviewed 2026-08-01