Loan repayment calculator

What the result means

An amortising loan has a level repayment that pays interest first and reduces principal over a fixed term. Personal and car loans usually work this way; credit cards do not.

How it is calculated

Repayment = P × r(1+r)^n / ((1+r)^n − 1)

• P: Principal.
• r: Period rate (annual ÷ 12, 26 or 52).
• n: Number of payments.

The PMT formula finds the constant payment that clears the loan if every payment is made on time.

Worked example

$25,000 over 5 years at 9.5%

A car loan repaid monthly.

Payments

60

Monthly rate

9.5% ÷ 12

Repayment

About $525

Interest over five years is a large extra cost on top of the $25,000 car price.

Comparison rates and fees are extra

Lenders must often advertise a comparison rate that folds in some fees. This calculator uses the interest rate you type and ignores establishment fees, balloon payments and early-exit costs.

Use the mortgage calculator for home loans — those terms are longer and often include offset and extra-repayment choices.

Questions