Personal Loan Calculator
Work out the repayment on a personal loan from the amount, rate and term, monthly, fortnightly or weekly, see the total interest, and test what extra repayments save.
Guide
How the repayment is worked out
Interest is charged each repayment period at the yearly rate divided by the number of repayments in a year. The level repayment that clears the loan over n payments is loan × r ÷ (1 − (1 + r)−n), where r is the rate for one period.
For example, $15,000.00 at 9% over 5 years is $311.38 a month. That is 60 payments, $18,682.52 in all, so $3,682.52 of it is interest. The amount, rate and term here are placeholders, not a quote.
Term, rate and total cost
A longer term lowers the payment but costs more interest. On the example, stretching 5 years to 7 years lowers the payment to $241.34 a month but raises the interest to $5,272.24. Shortening it to 4 years makes the payment $373.28 and the interest $2,917.23. A rate one point higher (10%) makes the payment $318.71. The table under the result compares terms for your own figures.
Extra repayments
Anything you pay above the payment reduces the amount you owe, so less interest is charged from then on. An extra $50 a month on the example pays the personal loan off in 4 years 2 months instead of 5 years, and saves $644.39 of interest. Put an amount in the extra box to try your own, or a one-off amount to pay now.
Some lenders charge a fee for extra or early repayments, especially on fixed-rate loans, so ask yours.
Weekly and fortnightly repayments
The Repayments box switches between monthly, fortnightly and weekly. Interest is worked out at the same frequency as the repayments. A fortnightly repayment worked out to clear the personal loan in the same 5 years costs almost the same overall ($3,652.79 interest against $3,682.52). Paying half the monthly amount, $155.69, every fortnight is 26 payments a year, the same as 13 monthly payments, and clears it in 4 years 6 months. Your lender may calculate interest differently, so check the result with them.
What is not included
Establishment fees and early repayment fees are not included. Use the fees box for ongoing account fees. A lender’s comparison rate takes certain fees into account, so compare comparison rates between lenders, not just the interest rate.
Common questions
How much extra should I pay?
Any extra helps. On $15,000.00 at 9% over 5 years, an extra $50 a month saves $644.39 of interest and shortens the loan by 10 months. Check first that your lender allows it.
Why is so much of the early payment interest?
Interest is charged on the whole balance. In the first month of the example, $15,000.00 at 9% a year is $112.50 of interest, so only $198.88 of the $311.38 reduces the loan.
Is the interest rate fixed?
This assumes the same rate for the whole term. If your rate is variable, run it again with the new rate, the balance owing and the years left.
Does this include fees?
Only the ongoing fees you type into the fees box. Upfront fees and early repayment charges are not included.
What next?
- Clearing a card? See how long a monthly payment takes. Credit Card Repayment Calculator
- Buying a car? Work out the loan repayment. Car Loan Calculator
- Borrowing for a home project? Estimate what to buy with Handyfig