💳 Loan Calculator
Calculate your monthly loan payment, total interest, and full repayment cost for any personal or auto loan.
Enter your values
- Total amount paid€12,165.84
- Total interest paid€2,165.84
What this means
- Monthly payment: €202.76
- Total interest: €2,165.84
- Total repaid: €12,165.84
Visual results
Detailed breakdown
| Year | Principal paid | Interest paid | Remaining balance |
|---|---|---|---|
| 1 | €1,694.40 | €738.77 | €8,305.60 |
| 2 | €3,529.44 | €1,336.90 | €6,470.56 |
| 3 | €5,516.78 | €1,782.72 | €4,483.22 |
| 4 | €7,669.07 | €2,063.60 | €2,330.93 |
| 5 | €10,000.00 | €2,165.84 | €0.00 |
About this calculator
How loan repayments work
Every loan repayment covers two components: principal (the amount borrowed) and interest (the lender’s charge for the loan). In an amortizing loan the total monthly payment stays fixed, but the split shifts over time — early payments are mostly interest; later payments are mostly principal.
The amortization formula
M = P × r(1+r)^n / ((1+r)^n − 1)
Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments.
Shorter terms vs lower payments
A longer term lowers your monthly payment but significantly increases the total interest you pay. A 5-year loan at 8% will cost far less in interest than a 10-year loan for the same amount, even though the monthly payment is higher.
Early repayment
Making extra payments reduces the outstanding principal, which directly reduces the interest you’re charged going forward. Even a single extra payment per year can cut years off the loan term.
Related guides
Frequently asked questions
How is the monthly loan payment calculated?
The formula is: M = P × r(1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual ÷ 12), and n is the number of months.
Does a shorter term save money?
Yes — a shorter term means fewer months of interest accumulation, so your total interest paid is much lower. The trade-off is a higher monthly payment.
What happens if I make extra payments?
Extra payments reduce the principal faster, which lowers the interest charged in subsequent months and can dramatically shorten the loan term. Many lenders allow overpayments without penalty.