Use this loan calculator to estimate your monthly repayment, total interest, insurance cost and full borrowing cost before signing a loan offer. It works well for mortgages, personal loans, car loans and other amortizing credit. Enter the loan amount, annual rate and duration to compare scenarios and understand how a longer term may lower the monthly payment while increasing the total cost.
Monthly payments are calculated using the amortization formula: M = P × r(1+r)^n / [(1+r)^n−1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. This formula distributes payments evenly across the loan term.
The interest rate is the basic cost of borrowing money. The APR (Annual Percentage Rate) includes the interest rate plus all additional fees (insurance, origination fees, etc.). Always compare APRs when shopping for loans, as it reflects the true total cost.
A longer loan duration lowers your monthly payments but increases total interest paid. A shorter duration means higher monthly payments but significantly less total interest. For example, extending a loan from 15 to 25 years may reduce monthly payments by 25% but double the total interest paid.
Generally yes — early repayment saves you money on interest. However, check for prepayment penalties in your loan agreement. In France, prepayment penalties for mortgages are capped at 6 months' interest or 3% of the remaining balance.
Because the debt is spread over more months, which lowers each payment, but interest is charged for a longer period. That usually makes the total amount repaid significantly higher.
Formula (Amortization): M = P × [r(1+r)^n] / [(1+r)^n − 1] | Where: M = Monthly payment, P = Principal, r = Monthly rate (annual/12), n = Number of payments (years × 12)
Example: A €200,000 loan at 3.5% over 20 years: Monthly payment ≈ €1,160. Total interest ≈ €78,400. Total repaid ≈ €278,400.
To compare two loans, look beyond the monthly payment. A lower monthly amount can look more comfortable, but the longer term may lead to much more interest paid over time. The most useful comparison is usually monthly payment, total interest, total repaid, and the effect of insurance or other recurring costs.
A practical approach is to keep the loan amount constant and vary only one factor at a time. For example, compare a 15-year term and a 25-year term at the same rate, then compare two different rates at the same duration. This helps you understand what is changing and which trade-off matters most for your budget.
The three biggest drivers are rate, duration, and principal. Even a small change in the annual rate can create a large difference across many years. Likewise, extending a loan by several years often reduces the monthly payment but increases the total cost significantly.
Insurance and fees can also matter more than borrowers expect. That is why a monthly-payment estimate is useful, but a decision should still be guided by the full repayment picture rather than only the cheapest-looking monthly number.
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