The method
How it is worked out
Payment = P × i × (1 + i)N(1 + i)N − 1
- P
- Amount borrowed
- i
- Rate per payment, annual ÷ payments a year
- N
- Number of payments
Loan Calculator
Estimate repayments and total interest for a fixed-rate personal or business loan. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- FeesArrangement fees and early repayment charges aren't included.
- Variable ratesThis assumes the rate stays fixed for the whole term.
- Your creditThe rate you're offered depends on your credit score.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Loan Calculator
Use this calculator to compare a fixed-rate loan before accepting an offer. It is suited to a personal loan, a business purchase or a home improvement project when you know the amount borrowed, quoted interest rate and repayment period. View the regular payment alongside the total interest and amount repaid. Repayments can be shown monthly, fortnightly, weekly or daily (260 working days a year), which is how many business lenders and some personal lenders now collect.
How it works and an example to tryShow less
How to use the result
The calculator divides the annual rate by the number of payments in a year, then amortises the balance over the term. Select monthly, fortnightly or weekly payments to see how the instalment schedule changes. The result assumes the rate stays fixed and that payments are made on time; lender fees and early-settlement charges are outside this model.
Example to try
Enter a 25,000 loan over five years at 8% and compare monthly with fortnightly payments. Examine the total interest, not only the instalment. If a lender charges an arrangement fee, add that separately when comparing its offer with another loan.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Anyone about to sign a fixed-rate personal loan, a sole trader financing equipment, or a household comparing a bank loan with dealer finance. It is also used by small businesses checking whether a supplier's payment plan is cheaper than borrowing from a bank.
Mistakes worth avoiding
- Comparing offers by monthly payment alone; a longer term nearly always lowers the payment but raises the total interest.
- Ignoring arrangement fees and early-settlement charges, which are not part of the quoted rate.
- Assuming the advertised representative rate is the rate you will be offered; lenders price to your credit history.
Questions
What does the Loan Calculator do?
Estimate repayments and total interest for a fixed-rate personal or business loan.
How should I use the result?
The calculator divides the annual rate by the number of payments in a year, then amortises the balance over the term. Select monthly, fortnightly or weekly payments to see how the instalment schedule changes. The result assumes the rate stays fixed and that payments are made on time; lender fees and early-settlement charges are outside this model.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a loan calculator?
Comparing offers by monthly payment alone; a longer term nearly always lowers the payment but raises the total interest. Ignoring arrangement fees and early-settlement charges, which are not part of the quoted rate. Assuming the advertised representative rate is the rate you will be offered; lenders price to your credit history.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.