How this calculator works
Enter the balance to finance, a nominal annual rate and a whole number of monthly payments. The result clears the balance at the final scheduled payment under monthly compounding. The rate stays constant and no additional borrowing, fees or early repayments are included.
Formula
i = r/12; A = P × i / (1 - (1 + i)^(-N)); total paid = N × A; total interest = N × A - P. At zero interest, A = P/N. P is principal, r is the annual rate as a fraction and N is the number of months.
Worked example
Repaying $1,200 at 0% over 12 months requires $100 a month. A $10,000 loan at 6% over 24 months requires $443.21 a month and totals $10,636.95 before display rounding of individual payments.
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Frequently asked questions
Can I use this for an interest-free loan?
Yes. At 0%, the monthly repayment is simply the amount borrowed divided by the payment count.
Does a longer term lower the total cost?
A longer term generally lowers each payment but increases total interest when the rate is positive. Compare both the payment and total repayment.
Can the term be a fraction of a month?
No. The payment count must be a whole number of months, and a fractional entry is rejected.