Free Loan Payment Calculator - Monthly Payment & Interest

Calculate monthly loan payments, total interest and view amortisation schedules. Supports any loan amount and term.

What Is Loan Payment Calculator?

A loan calculator estimates your monthly repayments and total cost for any fixed-rate loan — personal loans, car finance, home improvement loans or any borrowing with regular payments. It uses the standard amortisation formula to calculate how your balance decreases over time as each payment covers both interest and principal.

Seeing the total interest paid over the full loan term often reveals the true cost of borrowing. A £10,000 loan at 8% over 5 years costs roughly £2,165 in interest — over 21% of the original loan amount. Shortening the term increases monthly payments but dramatically reduces total interest.

How to Use This Tool

  1. Enter the total loan amount you want to borrow.
  2. Set the annual interest rate (APR).
  3. Choose the repayment period in months or years.
  4. View your monthly repayment amount, total repaid and total interest.
  5. Adjust the term to see how shorter or longer repayment periods affect costs.

Tips & Best Practices

  • Always compare the APR (Annual Percentage Rate) rather than the headline rate — APR includes fees and gives the true cost of borrowing.
  • Shorter loan terms mean higher monthly payments but significantly less total interest paid.
  • Check for early repayment charges before making lump sum payments — some lenders charge fees for paying off loans early.
  • A difference of just 1% in interest rate on a £20,000 loan can mean over £500 in additional cost over the term.

Common Use Cases

  • Estimating monthly payments before applying for a personal or car loan.
  • Comparing loan offers from different lenders by total cost.
  • Deciding between a shorter term with higher payments versus a longer term with lower payments.
  • Calculating the total cost of hire purchase or finance agreements.

Frequently Asked Questions

How is the monthly payment calculated?

Uses the standard amortisation formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly rate, and n is total payments.