M = P × r × (1+r)^n / ((1+r)^n − 1)
P = Loan amount, r = monthly interest rate, n = number of payments.
Total Interest = Total Payment − Loan Amount
Used to determine the total interest paid during the loan term.
A loan calculator helps borrowers estimate their monthly loan payments, total interest payable and overall repayment cost before taking a loan.
Loan payments consist of principal repayment and interest payment. Each monthly installment reduces the outstanding loan balance.
Monthly loan payments are calculated using the amortization formula based on loan amount, interest rate and loan tenure.
Loan amount, interest rate and loan tenure directly affect monthly payments and total interest payable.