Loan Payment Calculator

How to calculate loan monthly payment

This calculation assumes a fixed annual nominal interest rate, monthly repayments and a fully repaid balance at the end of the term. Each payment covers interest and a portion of the principal.

Formula

P × r ÷ (1 − (1+r)^−months); r = annual rate ÷ 1200

Worked example

Loan amount

10,000

Annual interest (%)

6

Term (years)

5

Applying the formula to these values gives 193.328015294 .

What should I check?

Fees, variable rates, payment dates and lender rounding can change real repayments. The rate is a nominal annual interest rate, not a full APR calculation. This is an estimate, not a loan offer.

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