Estimate your monthly loan payment, total interest, total repayment amount and payment-by-payment amortization schedule using a standard fixed-payment loan formula.
Enter your loan details to estimate the monthly repayment, total interest and total amount payable.
A summary of your estimated repayment based on the information entered above.
The amount you borrow is the principal. Interest is the additional amount charged for borrowing the money.
The principal is the original amount borrowed. For example, if you borrow ₦1,000,000, your initial principal is ₦1,000,000.
Interest is the cost of borrowing. With an amortizing loan, each payment normally contains both an interest portion and a principal portion.
Total payment represents the estimated principal plus interest paid over the full repayment period. It does not automatically include lender fees or other charges.
The amortization schedule shows how each estimated payment is divided between principal and interest and how the outstanding balance changes over time.
| Payment | Payment Amount | Principal | Interest | Remaining Balance |
|---|
Understanding a simple example can make the repayment schedule easier to interpret.
| Loan Detail | Example |
|---|---|
| Loan amount | ₦1,000,000 |
| Annual interest rate | 12% |
| Loan term | 2 years |
| Number of payments | 24 monthly payments |
In an amortizing loan, the interest portion is generally larger earlier in the schedule because the outstanding balance is higher. As the principal is reduced, the interest portion normally becomes smaller and more of the payment goes toward principal.
A loan with a lower monthly payment is not necessarily cheaper. A longer repayment period can result in substantially more interest being paid over the life of the loan.
Ask the lender about processing fees, insurance, service charges, penalties and other costs that may not be included in a basic interest-only calculation.
Confirm whether the quoted rate is annual or periodic, and whether the lender uses a reducing balance, flat-rate or another method of calculating interest.
If you expect to make additional payments, find out whether the lender permits early repayment and whether any early-settlement charges apply.
A loan calculator can help you estimate and compare different borrowing scenarios before making a financial decision.
The loan figures you enter are used by this calculator to perform the calculation in your browser. Avoid entering unnecessary personal information such as bank account numbers, passwords or other confidential financial information.
An amortizing loan is repaid through scheduled payments that cover interest and reduce the principal balance over time. When the scheduled payments are completed, the balance should reach zero, subject to the lender's calculation and rounding rules.
Interest is calculated based on the outstanding balance in a standard reducing-balance amortization. Because the balance generally falls after each principal payment, the interest portion normally decreases over time.
Generally, spreading the same loan over more monthly payments reduces the required monthly payment. However, because interest is charged over a longer period, the total interest paid can be higher.
When the interest rate is zero, the calculation becomes simple principal divided by the number of payments. For example, a ₦120,000 interest-free loan paid over 12 months would have an estimated payment of ₦10,000 per month.
No. The basic calculation estimates principal and interest only. Processing fees, insurance, taxes, service charges and other lender-specific costs may increase the actual cost of borrowing.
No. It is an estimate. Always compare the calculator results with the lender's official repayment schedule and loan agreement before accepting a loan.
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