Loan Calculator
Calculate monthly payment and total interest
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Monthly Payment
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Total Amount
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Total Interest
🏦 How Loan Payments Work
Loans use amortization — each monthly payment covers both interest and principal. Early payments are mostly interest; later ones are mostly principal. The formula ensures equal payments throughout the loan term.
Formula: PMT = P × [r(1+r)ⁿ] / [(1+r)ⁿ−1]
💡 Smart Borrowing Tips
- The shorter the loan term, the less total interest you pay
- Aim for monthly payments under 30% of your income
- Compare offers from multiple lenders before signing
- Watch for admin fees and early repayment penalties
❓ FAQ
Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P=principal, r=monthly rate, n=number of payments.
This calculator uses a standard amortization formula. Islamic products like Murabaha or Ijara have different structures — consult your bank for exact figures.
Make extra payments toward the principal, choose a shorter loan term, or negotiate a lower interest rate.