Loan Payment and Interest Calculator

Set the rate period before calculating

Enter the loan principal and choose whether the quoted nominal interest rate is monthly or annual. A 1% monthly nominal rate corresponds to 12% annually in this model. Enter the term in months and choose the currency; changing currency does not convert exchange rates. The model uses a fixed monthly rate and equal payments at the end of each month. Results exclude taxes, insurance, fees and early repayment, and do not represent APR or a bank offer. A zero rate divides principal by the number of months. Rounding may require a final-payment adjustment.

Loan Payment Calculator Guide

This guide helps you use the fixed nominal rate loan calculator correctly and the entire calculation runs in your browser without sending your data to an external server. The method is straightforward because the annual nominal rate is divided by twelve to obtain the monthly rate and your debt is repaid in equal instalments over the selected term. This model excludes origination fees, insurance, taxes and additional charges, so the result shows only the relationship between principal and interest. To compare different term and rate scenarios, calculate the same amount several times and carefully examine the balance between the monthly payment and total repayment. After finding an instalment that fits your budget, request the final payment schedule including fees from your bank.

Worked example and verification

These fixed inputs were checked against the tool code. Recalculate with your own amounts and rates; monetary results are rounded to two decimals.

Formula checked on: 2026-11-03

What is the equal monthly payment for 100,000 at 12% annual interest over 12 months?

A nominal annual rate of 12% corresponds to 1% monthly in this example. The equal monthly payment is about 8,884.88. Fees, insurance and additional taxes are excluded; rounding can affect the last payment. This is not a bank offer.

r = 0.12/12; n = 12; P = 100000; A = P × r / (1 - (1 + r)^(-n)) ≈ 8884.88

How is the payment calculated at 0% interest?

For principal 100,000 over 12 months, the theoretical monthly payment is 100,000 ÷ 12, about 8,333.33. Modelled interest is zero. Payments rounded to two decimals can need a final adjustment; external charges are excluded.

A = P / n = 100000 / 12 ≈ 8333.33; interest = 0