Explanation and example
With an amortizing loan, the scheduled monthly payment stays the same throughout the term. The interest and principal portions inside each payment change over time, while the formula keeps the payment amount constant.
For example, for a loan of 100,000 over 5 years at 12% annual interest:
i = 12% / 12, n = 60
The term is 60 payments, and the calculator determines the monthly payment, total repayment and total interest.
More examples
100,000 over 5 years at 12% annual interest
250,000 over 3 years at 18% annual interest
50,000 over 24 months at 0%
120,000 over 18 months at 9.5% annual interest
What payment type does the calculator use?
It uses an amortizing loan with equal scheduled monthly payments throughout the term.
Does the calculator include fees, insurance or extra charges?
No. The calculation uses the loan amount, annual interest rate and term. Fees, insurance and other charges must be considered separately.
What happens when the interest rate is 0%?
At a zero rate, the principal is divided by the number of monthly payments and total interest is zero.
Can I enter the term in months?
Yes. You can switch between years and months, and the calculator converts the current term when you switch.
Is this result an exact lender quote?
No. It is a mathematical estimate. The actual schedule and total loan cost can differ because of rounding rules, fees, insurance and lender-specific terms.
