Installment Calculator
Calculate the loan installment and total payment.
How is it calculated?
Installment = Principal × i ÷ (1 - (1 + i)⁻ⁿ), i = Annual Rate ÷ 12 ÷ 100
Example: With 0% interest, Installment = Principal ÷ Term
More about this calculation
An installment is a fixed regular payment used to repay a loan over time. This calculator shows the monthly installment, the total repayment and the total interest.
Loan payments are usually calculated with an amortization formula that uses the monthly interest rate and the number of payments, so every installment is the same amount. Each payment covers the interest for that period and reduces the remaining principal. A longer term lowers the monthly payment but increases the total interest paid over the life of the loan.
Frequently asked questions
How is the monthly installment calculated?
Using the amortization formula with the monthly interest rate and the total number of payments, which keeps every installment equal.
Why is the total repayment higher than the loan?
Because interest is added to the amount you borrow, so you repay the principal plus the interest.
What happens if I choose a longer term?
A longer term lowers the monthly payment but increases the total interest you pay.