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.
Publicidad
Ad
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.
Publicidad
Ad
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.