About this tool
The calculator uses the standard formula for a fixed-rate amortising loan with monthly payments: EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the amount borrowed, r is the monthly rate (annual rate ÷ 12) and n is the number of months. Early payments are mostly interest; later ones mostly repay the principal, as the yearly table shows.
Real loans can include arrangement fees, insurance and different compounding rules. Some lenders in the region quote a "flat rate", which makes the true cost much higher than the same reducing-balance rate. Ask your lender for the APR or reducing-balance rate.
Good to know
- Fixed rate, monthly payments, reducing balance. Flat-rate loans are not modelled.
- Fees, insurance and taxes are not included.
- For information only; not financial advice.