Loan repayment calculator

See the monthly repayment, the real interest and the full schedule before you sign.

Two loans can both say "24% a year" and cost very different amounts. This shows your monthly repayment, the total interest and every payment, and makes the flat rate versus reducing balance difference plain.

Why use it

Know the monthly figure before you commit, so the loan fits your cash flow and not the other way round.
Spot a flat-rate loan: interest charged on the full amount for the whole term costs far more than the headline rate suggests.
Compare two offers side by side on total cost, including upfront fees, not on the rate alone.

How it works

Enter the amount you want to borrow and the interest rate per year.
Set the term in months and choose reducing balance or flat rate.
Add any upfront fees, such as processing, management or insurance charges.
Read the monthly repayment, total interest, total cost and the payment-by-payment schedule.

Good to know

A loan of 100,000 over 12 months at 24% flat costs 24,000 in interest. At 24% reducing balance it costs about 13,472. To match the flat loan, a reducing-balance rate would need to be about 41.7% a year.
Amortise comes from the Old French amortir, "to deaden" or "to kill". Each payment kills off a bit of the debt.
Mortgage comes from Old French too: "dead pledge". The pledge dies when the debt is paid off, or when the borrower fails to pay.

Questions

What is the difference between flat rate and reducing balance?

With reducing balance, interest is worked out on what you still owe, so it shrinks as you repay. With flat rate, interest is worked out on the original amount for the whole term, even though you are paying it down every month. At the same headline rate, flat rate always costs more, often close to double the interest.

Why is my lender's figure slightly different?

Lenders may round differently, charge interest daily, add insurance or fees to each payment, or use a different first payment date. Use this to check the ballpark and ask the lender for their full repayment schedule in writing.

Do upfront fees really matter?

Yes. If you borrow 100,000 and a 3% fee is deducted, you receive 97,000 but repay interest on 100,000. Add the fees in and compare the total cost of each offer, not just the rate.

Is my information saved?

Only on your own device, so your figures are there next time. Nothing you type is sent to us.

Please note

Provided free, as is, for general use. It is not financial, lending or legal advice. Results are estimates based on the figures you enter and may differ from your lender's calculation because of rounding, timing, daily interest, insurance or other charges. Always get the full terms and repayment schedule from the lender in writing, and speak to a qualified financial adviser before taking on debt you are unsure about.