Loan Calculator
By using our Online Loan Calculator you are able to calculate and find out what your monthly interest repayments would turn out to be. Our calculator will provide you with a monthly interest repayment plan over a variety of years and compare each year to the monthly repayment period which you have chosen.
The Loan Repayment Formula
The Loan Repayment Calculator uses the following basic formula:
Monthly Loan Payment = { Rate + Rate / [(1 + Rate)^{ months} 1] } x Principal Loan Amount
Where:
Rate (Monthly Interest Rate) = Decimal Rate / 12 , or Rate = (Annual Interest Rate / 100) / 12
Things to Consider When Taking Out a Personal Loan
 Affordable: Make sure that you are able to afford the repayments that are going to come on your personal loan. You are the only one who really knows whether or not you can take out a personal loan, and whether or not taking out loans will only cause more financial struggles in the future. Take time to think about whether or not you will be able to afford a loan in the long run.
 Loan Security: When taking out a loan, make sure you take the time to read into the fine details of your contract agreement. Failure to make repayments could end with you having massive debt and losing your home.
 Research: It's important to research on better deals. Some banks run promotions at certain times of the year, so never presume that one bank is better than the other. Banks are a lot cheaper when it comes to interest than loan specific companies.
 Interest Rates: Make sure you fully read into the interest rates applied to a personal loan. You may think that you are getting an incredibly deal with a lowinterest rate, but on the other hand you may have to pay that loan off for another couple of years meaning you are paying a noticeably larger amount.
 Borrow Little, Repay Quickly: It's important that you don't get out of your depths with your loan. Borrow the minimum amount you need to take out the loan, and repay it as soon as you can.
 Pay Day Loans: Never use a Pay Day lender, this is a fantastic way to completely destroy your financial credibility. These lenders have no consideration of your wellbeing and will help destroy your financial situation as long as it benefits them. Avoid them at all costs.
 Don't Lend at All: Although it may be difficult in the current day and age, try to avoid taking out a loan all together. It may be tempting to get that little extra money to buy something you'd like, but it will feel a lot better if you earn the money yourself.
 Choose Between a Personal Loan or a Car Loan: Again, do your research. Although personal loans usually offer far better interest rates than car loans. Car dealerships are known to push you towards taking out loans which have a ridiculous APR rate. When you're looking to invest in buying a new car, be patient and look at different lenders.
With all of this in mind, the bottom line is to make sure that you are able to cope with the loan not only in the present, but also the future. When you are taking out a loan, it is to ensure you are able to pay something in the future. Whether it be a mortgage or a car loan, make sure you put time aside and think deep into all of the points above, and make sure that you are able to take on the pressure that comes with repaying a loan.
What is Loan Calculator
A Loan Calculator is a financial tool used to calculate various aspects of a loan, such as the monthly payment amount, total interest paid, and loan amortization schedule. It helps individuals or businesses understand the financial implications of taking out a loan and assists in making informed decisions about loan terms and repayment options.
Here's how a typical Loan Calculator works:

Loan Amount: You input the total amount of money you are borrowing from a lender. This represents the principal amount.

Interest Rate: The calculator allows you to input the annual interest rate associated with the loan. This rate determines the cost of borrowing money.

Loan Term: You specify the duration or time period over which you will repay the loan. This can be in years, months, or any other unit of time.

Calculation: Using the provided inputs, the Loan Calculator calculates various aspects of the loan. It determines the monthly payment amount, the total amount of interest paid over the loan term, and generates an amortization schedule that shows the breakdown of each payment towards principal and interest.

Displaying the Result: The calculator presents the calculated results, including the monthly payment amount, total interest paid, and the detailed amortization schedule. The amortization schedule typically includes information such as the payment number, payment date, payment amount, interest paid, principal paid, and the remaining loan balance after each payment.
The Loan Calculator allows borrowers to evaluate different loan scenarios by adjusting the loan amount, interest rate, and term. Users can determine the affordability of loan payments, compare repayment options, and understand the longterm cost of borrowing.
It's important to note that the calculated results are estimates based on the provided inputs and assumptions. Actual loan terms, interest rates, and repayment schedules may vary depending on factors such as lender policies, creditworthiness, fees, and other specific terms. Therefore, it's advisable to consult with a qualified financial advisor or lender for accurate and personalized information regarding loan calculations and terms.
Loan Calculator Example
Certainly! Here's an example of a Loan Calculator that calculates the total repayment amount and monthly installment for a loan based on the principal amount, interest rate, and loan term:
Let's assume we have the following loan details: Principal Amount: $20,000 Interest Rate: 6% per year Loan Term: 5 years
To calculate the total repayment amount, we can use the formula:
Total Repayment Amount = Principal + Total Interest
Total Interest = Principal * Interest Rate * Loan Term
First, let's calculate the total interest:
Total Interest = $20,000 * 0.06 * 5 = $6,000
Now, we can calculate the total repayment amount:
Total Repayment Amount = $20,000 + $6,000 = $26,000
Therefore, the total repayment amount for a $20,000 loan with a 6% interest rate over a 5year term would be $26,000.
To calculate the monthly installment, we divide the total repayment amount by the number of months in the loan term:
Number of Months = Loan Term in Years * 12 = 5 * 12 = 60 months
Monthly Installment = Total Repayment Amount / Number of Months
Monthly Installment = $26,000 / 60 = $433.33 (rounded to two decimal places)
Therefore, the monthly installment for a $20,000 loan with a 6% interest rate over a 5year term would be approximately $433.33.
Please note that the values used in this example are for illustrative purposes and may not reflect actual interest rates or loan terms.