Personal Loan Calculator
A personal loan calculator lets you know exactly what your monthly payment will be before signing any contract. Enter the loan amount, annual interest rate, and number of installments to get the exact monthly payment, total amount to repay, and total interest accumulated over the life of the loan.
Monthly payment
Total to pay
Total interest
Principal vs. interest per month (first 12)
Based on the French amortization system (fixed payment). Excludes fees and taxes.
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How it works
The formula used is the fixed payment (French amortization) formula: PMT = P × r / (1 − (1+r)^−n), where P is the loan amount, r is the monthly rate (annual rate / 12 / 100), and n is the total number of payments. This formula ensures each payment is equal, though the proportion between principal and interest varies: early payments are mostly interest, later payments are mostly principal.
Example: how the payment changes with the term
Take a loan of 10,000 in principal at 12% annual interest. Over 24 months the monthly payment is 470.73 and you end up paying 11,297.63 in total, of which 1,297.63 is interest. Stretch the term and the payment drops but the total interest rises, because the principal stays outstanding longer and keeps generating interest. The table shows the same loan over different terms: notice how a more comfortable payment is almost never the cheapest option.
| Term | Monthly payment | Total to pay | Total interest |
|---|---|---|---|
| 12 months | 888.49 | 10,661.85 | 661.85 |
| 24 months | 470.73 | 11,297.63 | 1,297.63 |
| 36 months | 332.14 | 11,957.15 | 1,957.15 |
| 48 months | 263.34 | 12,640.24 | 2,640.24 |
APR vs nominal rate: compare the total cost, not just the payment
The nominal annual rate does not reflect everything you pay. The real cost of a loan includes origination fees, insurance, administrative charges, and how often interest is compounded. To bundle all of that into a single comparable figure there is the effective rate: it is called APR in the United States and the United Kingdom, TAE in Spain, CFT in Argentina, and CET in Brazil. Two loans with the same monthly payment can carry very different total costs if one loads more fees. So when you compare offers, always look at the effective rate and the total to repay over the whole life of the loan, not just which payment fits your monthly budget.
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Preguntas frecuentes
- How is a personal loan payment calculated?
- The fixed payment (French amortization) formula is used: PMT = P × r / (1 − (1+r)^−n). P is the principal, r is the monthly rate (annual rate divided by 12), and n is the number of payments. Each payment includes a portion of principal and interest, with the total always remaining constant.
- What is the difference between nominal and effective interest rate?
- The nominal rate is the one stated in the contract (e.g., 24% annual). The effective annual rate accounts for monthly compounding and is slightly higher. This calculator uses the nominal annual rate divided by 12 to get the monthly rate.
- What is French amortization?
- It is the most common loan repayment system. All installments are equal. At the beginning, most of the payment goes toward interest; toward the end, most goes toward reducing the principal. The total interest paid is higher than with constant principal amortization (German system).
- How do I reduce the total cost of a loan?
- The two key variables are interest rate and term. The lower the rate and the shorter the term, the lower the total cost. However, a shorter term increases the monthly payment. The balance depends on your monthly capacity versus the total interest you are willing to pay.
- Does this calculator include taxes or fees?
- No. The result is the pure financial cost of the loan (principal + interest). Banks and lenders typically add origination fees, insurance, VAT on interest, and other charges that increase the real cost. Always request the Total Financial Cost (APR) when taking out a loan.
- Is it worth paying off a loan early?
- Usually yes: since interest accrues on the outstanding balance, every early payment cuts future interest — and the earlier in the schedule, the bigger the savings. Check whether your contract charges an early-repayment fee and compare it against the interest you would avoid before deciding.