Loan repayment calculator
Estimate the instalment, total interest and full repayment schedule for a standard reducing-balance loan.
These figures are estimates for learning purposes. They are not a quote or an offer from a lender.
How it works
The instalment is calculated with the standard reducing-balance formula: interest is charged on the balance still owed, so each payment covers that period's interest and repays part of the loan. Payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the rate per payment period and n is the number of payments.
Nominal and effective rates
The rate you enter is treated as a nominal annual rate, divided equally across the payment periods. Because interest is charged more than once a year, the effective annual rate — what you actually pay over a year — is slightly higher. Lenders and countries quote rates in different ways, so check which one an offer uses.
Assumptions
Fixed rate for the whole term, payments made on time, no fees, insurance or early repayments. Results are rounded for display.
Global Loan Advisor is an independent educational research platform. We do not lend money, broker loans, guarantee financial outcomes or provide personalized financial advice. Our content is intended for general educational purposes. Your figures stay in your browser and are not sent to us.