Loan Calculator
For Information Only
You might also like...
A personal loan can be a useful financial tool for consolidating debt or making a large purchase. This calculator helps you estimate your monthly payments based on the loan amount, interest rate, and term.
Principal
This is the total amount of money you borrow. The higher the principal, the higher your monthly payments will be.
Interest Rate
The interest rate is the cost of borrowing the money, expressed as a percentage of the principal. Even a small difference in the interest rate can have a large impact on the total amount you repay over the life of the loan.
Loan Term
This is the period over which you'll repay the loan. A shorter term will result in higher monthly payments but lower total interest costs. A longer term will lower your monthly payments, but you'll pay more in interest overall.
Logic & Formulas
The monthly payment is calculated using the standard loan amortization formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where:
M= Monthly PaymentP= Principal Loan Amounti= Monthly Interest Rate (Annual Rate / 100 / 12)n= Number of Payments (Loan Term in Years * 12)
The total repayable amount is simply the monthly payment multiplied by the number of payments, and the total interest is the total repayable amount minus the original principal.