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Bethemesh
Finance & business

Loan calculator and monthly payments

Calculate loan payments, interest, total cost, payoff date and remaining balance. Explore the amortization schedule, charts and the impact of extra repayments.

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This choice applies to every calculator; amounts are not converted.

Monthly payment
-/ month
- payments
Loan ends -
Principal borrowed
-
Total interest
-
Total amount repaid
-
Actual term
-

Loan cost breakdown

-Total repaid
Principal-
-
Interest-
-

Loan balance over time

Remaining balance, principal repaid, cumulative interest and cumulative payments.

Remaining principalPrincipal repaidCumulative interestCumulative payments

Principal and interest repaid by year

See how much principal and interest you pay each year.

Principal repaidInterest paidRemaining principal

Impact of extra repayments

Compare the original loan with your accelerated repayment scenario.

Add an extra repayment to see the potential savings.

Amortization schedule

Every payment in detail: amount paid, interest, principal repaid and remaining balance.

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How does this tool work?

This loan calculator provides a detailed simulation of a loan: monthly payment, total cost, interest, payoff date, remaining balance, repayment progress and a complete amortization schedule. Change the amount borrowed, annual interest rate or term to see the effect on your budget immediately. Advanced options also let you measure the effect of monthly or one-off extra repayments.

For an amortizing loan with fixed monthly payments, the nominal annual rate is divided by twelve. The payment depends on the principal and number of installments. Each period charges interest on the outstanding balance before repayment; the remainder repays principal. The interest portion therefore gradually decreases. At zero interest, principal is simply spread across payments.

The schedule separates payments, principal, interest, extra repayments and the remaining balance. Money amounts are rounded, so the final payment may differ to clear the balance. The entered nominal rate is not an all-in APR: insurance, arrangement fees and other costs are not automatically included.

Extra repayments reduce principal after the normal payment. Subsequent interest applies to a smaller balance and the loan may end earlier while the displayed base payment stays unchanged. The comparison estimates interest and installments saved. Check contractual early-repayment charges and conditions separately.

How to use this tool

  1. Enter the amount, rate and term

    Enter the principal borrowed, nominal annual interest rate and term in years or months. The simulation recalculates automatically.

  2. Review the payment and total cost

    Immediately see the estimated monthly payment, total interest, total repaid, number of payments and payoff date.

  3. Explore the charts

    The donut compares principal and interest, the line chart tracks remaining balance and cumulative amounts, and the annual chart shows repayments over time.

  4. Review the amortization schedule

    Switch between monthly and yearly views to inspect each payment or get an annual summary.

  5. Test extra repayments

    Add a monthly amount or one-off payment to see how much interest and time could be saved.

Loan payment formula

For a fixed-rate amortizing loan with constant payments, the theoretical monthly payment can be calculated from the principal, periodic interest rate and number of payments.

Monthly payment

M = C × i × (1 + i)ⁿ / ((1 + i)ⁿ − 1)

This formula determines the constant payment, excluding fees and insurance, for a fixed-rate amortizing loan.

Interest for a payment

Iₖ = CRDₖ₋₁ × i

Interest for payment k is calculated on the remaining principal before that payment.

Principal repaid

Aₖ = M − Iₖ

The principal repaid equals the payment minus the period's interest.

New remaining principal

CRDₖ = CRDₖ₋₁ − Aₖ

After each payment, the remaining principal falls by the amount of principal actually repaid.

M
theoretical payment excluding insurance and fees
C
initial principal borrowed
i
periodic interest rate, here the monthly rate
n
total number of payments
Iₖ
interest paid at payment k
CRD
remaining principal

Example: for €200,000 borrowed over 20 years at a 3.5% nominal annual rate, the calculation uses 240 monthly payments and a monthly rate equal to the annual rate divided by 12.

See the detailed explanation

Understand the amortization schedule

Each payment is split between interest and principal repayment. As the loan progresses, the interest share decreases while the principal share increases.

  • Track the remaining balance
  • Separate principal from interest
  • Read each payment month by month
Understand the amortization schedule

Impact of extra repayments

An extra repayment directly reduces the outstanding principal. Future interest is then calculated on a smaller balance, which can reduce both the cost and the term of the loan.

  • Reduce principal faster
  • Save interest
  • Potentially shorten the loan term
Understand their impact

Use cases

Plan a financing project

Quickly estimate the monthly payment for an amount, rate and term before requesting offers from a bank or lender.

Compare different loan terms

See how a shorter term raises the monthly payment but generally reduces total interest, while a longer term lowers the payment but increases total cost.

Understand an amortization schedule

See month by month the principal, interest, cumulative amounts and remaining balance to understand how the loan changes over time.

Test an early repayment

Simulate a monthly or one-off extra payment and measure potential interest savings and the reduction in loan term.

Check a loan offer

Compare figures shown in a commercial simulation with a payment calculated from principal, nominal rate and term.

Examples

€200,000 loan over 20 years

The monthly rate is 3.5% ÷ 12. The first payment includes €583.33 of interest (200,000 × 0.035 ÷ 12), half of the instalment; the principal share then grows with every payment.

Input

€200,000 · 3.5% · 20 years

Result

Monthly payment €1,159.92; total interest €78,380.66; 240 payments

Shorter term

The monthly payment rises by €269.85, but total interest falls by €21,023.21 compared with the 20-year loan.

Input

€200,000 · 3.5% · 15 years

Result

Monthly payment €1,429.77; total interest €57,357.45; 180 payments

Extra repayment

The extra amount directly reduces the outstanding principal: the loan is repaid 26 months earlier and €9,412.77 of interest is saved, before any early-repayment charges in your contract.

Input

€200,000 · 3.5% · 20 years · +€100 per month

Result

214 payments instead of 240; total interest €68,967.89

Tips and best practices

  • Always compare several terms: a lower monthly payment does not necessarily mean a cheaper loan, because extending the term often increases total interest.
  • The rate used here is the nominal annual interest rate. Do not confuse it with APR, which can include other mandatory borrowing costs.
  • Early repayment may be subject to conditions or charges under your contract. This simulation measures the mathematical effect on the loan, not possible contractual fees.
  • When comparing two offers, do not look only at the monthly payment: also consider total repaid, interest, term and external fees not included in this initial simulation.
  • The remaining balance is especially useful for estimating the loan position at a given date, for example before a sale, refinancing or early repayment.

Sources and references

Frequently asked questions

How is a loan payment calculated?

For a fixed-rate amortizing loan, the payment depends on the principal borrowed, periodic interest rate and total number of payments. The financial formula produces a constant payment while the interest share gradually falls and the principal share rises.

Why do you pay more interest at the start of a loan?

Interest for each period is calculated on the remaining balance. At the start, that balance is close to the original loan amount, so interest is higher. As principal is repaid, the calculation base falls and so does the interest share.

What is the remaining loan balance?

It is the portion of the principal borrowed that has not yet been repaid. It should not be confused with all future payments, which also include future interest.

What is an amortization schedule for?

An amortization schedule details the loan payment by payment. It shows the payment date, amount paid, principal, interest, cumulative amounts and remaining balance after each payment.

What is the difference between the nominal rate and APR?

The nominal rate is mainly used to calculate loan interest. APR is designed to represent the overall cost of borrowing by including various mandatory fees and costs under applicable rules. This calculator uses the nominal rate and therefore does not display an incomplete or misleading APR.

Does an extra repayment always shorten the loan term?

In this simulation, extra repayments are applied directly to principal while the base contractual payment is maintained. Principal therefore falls faster, reducing future interest and generally shortening the term. Actual terms depend on the loan contract.

Is loan insurance included?

No. The simulation reproduces the financial mechanics of the loan using principal, nominal rate and term. Insurance, arrangement fees, guarantees and other costs are not included: to compare real offers, rely on the APR stated by the lender.

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