Calculate your loan payments, total interest, and view a full amortization schedule. Compare annuity vs decreasing payments. Free PDF export.
A loan calculator is a tool that computes your monthly payment, total interest, and full repayment schedule based on the loan amount, interest rate, and term. It lets you compare annuity (equal payments) versus decreasing payment methods, so you can see the true cost of borrowing before signing a contract.
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Loan Calculator
A loan calculator is a financial planning tool that helps you estimate your monthly payments, total interest costs, and overall repayment amount before you commit to borrowing. Whether you are considering a personal loan, car loan, or any other type of consumer credit, understanding the true cost of borrowing is essential for making informed financial decisions.
Our free online loan calculator gives you instant results with no registration required. Simply enter your loan amount, interest rate, and repayment period to see a complete breakdown of your payments. You can also export the full amortization schedule as a PDF for your records or to compare offers from different lenders.
Guide
Using the calculator is straightforward. Start by entering the total amount you plan to borrow in the Loan Amount field. Next, enter the Annual Interest Rate offered by your lender — this is the yearly rate, not the monthly rate. Then set your desired Loan Term in either years or months.
Finally, choose your Payment Type. Most consumer loans use annuity (equal) payments, but some European banks offer decreasing (declining) payment schedules as well. The calculator updates results in real time as you adjust any parameter, so you can quickly compare different scenarios.
The calculator displays three key figures: your Monthly Payment, the Total Interest you will pay over the life of the loan, and the Total Amount Paid (principal plus interest). The pie chart visually shows how much of your total payment goes toward principal versus interest, while the line chart tracks your remaining balance over time.
Payment Methods
The two most common loan repayment methods in Europe are annuity and decreasing payments. Understanding the difference can save you a significant amount of money.
With annuity payments, you pay the same fixed amount every month for the entire loan term. In the early months, a larger portion goes toward interest. Over time, more of each payment reduces the principal. This method is popular because it makes budgeting easy — you always know exactly what your monthly obligation is.
With decreasing payments, the principal portion stays constant but the interest portion decreases as the balance falls. Your first payment is the highest and each subsequent payment is slightly lower. On a €10,000 loan at 5% over 5 years: annuity = ~€1,323 total interest, decreasing = ~€1,271 — saving around €52.
Optimization
Making additional payments beyond your required monthly amount is one of the most effective ways to reduce the total cost of your loan. Every extra euro goes directly toward reducing the principal balance, which in turn reduces the interest charged in all future months.
Use the "What if I pay extra?" slider in the calculator to see exactly how much time and money you can save. Adding just €50 per month to a €20,000 loan at 6% over 10 years can save you over €1,200 in interest and shorten your loan by more than a year.
Amortization
An amortization schedule is a detailed table that shows every single payment over the life of your loan. For each month, it breaks down exactly how much of your payment goes toward principal, how much goes toward interest, and what your remaining balance is after the payment.
It helps you understand when you will cross the halfway point of your loan, when the majority of your payment starts going toward principal rather than interest, and how extra payments would affect your payoff timeline. Our calculator generates the full schedule and lets you export it as a PDF document.
Related Calculators
Use our mortgage calculator for a full cost breakdown including notary fees and insurance. If you are also saving for your future, our compound interest calculator shows how your savings grow over time alongside your loan repayment.
Practical Tips
Compare multiple lenders
Interest rates vary significantly between banks. Get quotes from at least three different lenders before making a decision.
Check your credit score
A higher credit score typically qualifies you for lower rates. Review your credit report and address any issues before applying.
Consider the loan term
Shorter loan terms often come with lower interest rates. A 3-year loan may have a significantly better rate than a 7-year loan.
Look at the total cost
A lower monthly payment with a longer term often means paying much more in total interest. Compare total costs across scenarios.
Negotiate
Loan terms are often negotiable, especially if you have a strong financial profile or an existing relationship with the bank.
Watch for fees
Some lenders charge origination fees, processing fees, or early repayment penalties. Factor these into your total cost comparison.
Annuity payments remain the same throughout the loan — each month you pay the same amount, but the ratio of principal to interest changes. Decreasing payments start higher but decrease each month as the principal portion stays constant while interest decreases. Decreasing payments result in less total interest paid.
For annuity loans, the monthly payment is calculated using the formula: M = P * [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the number of months. For decreasing loans, the principal portion is fixed (loan amount / number of months) and interest is calculated on the remaining balance.
Making extra payments can significantly reduce both the total interest paid and the loan term. Use the 'What if I pay extra?' slider to see exactly how much you would save. Even small additional payments of €50-100/month can save thousands in interest on a long-term loan.
An amortization schedule is a complete table of loan payments showing each monthly payment broken down into principal and interest portions, along with the remaining balance. It helps you understand exactly how your loan will be paid off over time.
Use the Annual Percentage Rate (APR) offered by your bank. This is the yearly interest rate, not the monthly rate. Common loan interest rates in Europe range from 3% to 12% depending on the type of loan and your credit profile.