Estimate monthly payment, total interest, payoff cost, and view a live amortization-style breakdown for loans in USD or GBP.
| Period | Equivalent Payment |
|---|
This tool provides payment estimates for informational purposes only. It is not financial, legal, lending, or tax advice. Actual payment terms, APR, compounding methods, fees, insurance, and lender-specific conditions may change your real repayment amount. Always review your official loan agreement and consult a qualified adviser before making borrowing decisions.
freeusukcalculator.com
| Item | Value |
|---|
For an amortizing loan, the monthly payment is fixed and calculated with the formula payment = P Γ [r(1 + r)βΏ] Γ· [(1 + r)βΏ β 1], where P is the amount borrowed, r is the monthly interest rate (the annual rate divided by 12), and n is the number of monthly payments. Each payment covers the interest due that month, and the remainder reduces the principal.
Early in the loan most of each payment goes to interest because the balance is large; over time the balance shrinks and more of each payment chips away at the principal.
Three levers move the monthly figure. A larger principal raises it directly. A higher interest rate increases both the payment and the total cost. A longer term lowers the monthly payment but increases total interest, while a shorter term does the opposite.
The calculator can solve for any missing value, so you can work backwards from an affordable monthly budget to see how much you can borrow, or compare how a small rate difference changes the lifetime cost. Comparing the APR rather than the headline rate gives the truest picture, since APR includes fees.
For an amortizing loan: payment = P Γ [r(1+r)^n] Γ· [(1+r)^n β 1], where P is the amount borrowed, r is the monthly interest rate (APR Γ· 12), and n is the number of months.
Yes β supply any combination of amount, rate, term and payment, and it solves for the missing value, so you can work out how much you can borrow for a given budget.
Yes, but it increases the total interest paid. A longer term lowers the monthly cost while a shorter term saves money overall.
APR is the yearly cost of borrowing including fees, not just the interest rate. Comparing APRs gives a fairer picture of which loan is truly cheaper.