Loan Repayment Calculator

How Loan Repayments Work

Every loan payment has two parts: principal, which directly reduces what you owe, and interest, the cost of borrowing. At the start a larger share of each payment is interest, because the debt is at its highest. As the balance falls, the interest share shrinks and the principal share grows. This is called amortisation.

The calculator uses the standard annuity formula to give you the exact monthly payment for any loan amount, interest rate and term, whether the loan is a consumer loan, a car loan, a student loan or another instalment loan.

How to Use This Calculator

Enter the loan amount, the annual interest rate from your loan agreement and the term in months: a four-year loan is 48 months and a five-year loan 60 months. You can also add an extra monthly payment to see how much time and interest you save by paying a little more each month.

The Power of Extra Payments

On a €15,000 loan at 6.5% over 48 months, the monthly payment is about €356 and the total interest about €2,075. Paying €50 more each month repays the loan 6 months sooner and saves about €290 in interest. Paying €100 more repays it 11 months sooner and saves about €510.

This works because every extra euro reduces the principal directly, so less interest builds up in every month that follows. That is why extra payments early in a loan have the largest effect.

Types of Loans

Consumer loans are usually unsecured, often from €1,000 to €50,000, with terms of one to seven years and interest rates that depend heavily on your credit history. Car loans are secured on the car and usually cheaper. Student loans often have low interest and long repayment times. Instalment purchases and credit cards can be very expensive if they are not paid off quickly. Enter the figures from your own loan agreement for an accurate result.

Frequently Asked Questions

What is the difference between the interest rate and the effective annual rate?

The nominal interest rate is the basic rate on the loan. The effective annual rate (APR, todellinen vuosikorko in Finnish, effektiv ränta in Swedish) also includes fees, so it shows the total cost of the loan. Use the nominal rate in this calculator. If you only know the effective rate, the result will slightly overstate the payment.

Can I repay my loan early?

Yes. Under EU consumer credit rules you always have the right to repay a consumer loan early, and you only pay interest for the time you actually had the money. The lender may charge compensation, but it is capped at 1% of the amount repaid early, or 0.5% if less than a year of the loan remains.

What happens if I miss a payment?

You usually pay late interest and a reminder fee, and a long delay can lead to a payment default entry that makes borrowing harder for years. If you are struggling, contact your lender early: many offer a payment break or a new repayment schedule.

Should I combine several loans into one?

Combining loans can lower the interest and make payments simpler, but a longer term can increase the total interest. Calculate both options with this tool, your current loans and the new combined loan, and compare the total cost, not only the monthly payment.

Tips for Paying Off Loans Faster

Round your payment up: paying €380 instead of €356 makes a real difference without feeling large. Put tax refunds, bonuses and other one-off income towards the principal. If you have several loans, pay extra on the one with the highest interest first, the "avalanche method", to save the most interest; or clear the smallest loan first, the "snowball method", if quick wins keep you motivated. Avoid new debt while you are repaying, and check whether you can refinance at a lower rate if market rates have fallen.