Loan calculator: what will this loan really cost?
Work out your monthly payment and total interest, see what a flat rate really costs, and find out how much paying a little extra could save.
Type of rate
Amount still owed
| Year | Paid | Of which interest | Still owed |
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About the loan calculator
- Worked example
- A loan of 1,000,000 at 12% over 5 years on a reducing balance costs about 22,244 a month, with 334,667 of interest in total. At a 12% flat rate, it costs about 26,667 a month, with 600,000 of interest. On the reducing balance loan, paying 5,000 extra a month would finish it in 46 months and save about 82,392.
- What is the difference between a flat rate and a reducing balance?
- A reducing balance charges interest only on what you still owe. A flat rate charges interest on the full loan for the whole term, so the same percentage costs much more. Switch between them above to compare.
- What is an EMI?
- An EMI is the same amount paid every month. Early payments are mostly interest, and later payments mostly repay the loan.
- Is this the exact amount my lender will charge?
- It is an estimate. Lenders can add processing fees, insurance and other charges, count days differently or change rates on variable loans. Check your lender's official figures before you sign. Some lenders also charge for paying early.