Calculator · Work out the monthly payment, total interest and total repayment on a fixed instalment loan.
Loan payment calculator
Enter an amount, a rate and a term to see the monthly payment, the total interest and the total you would repay. Add an extra monthly amount to see what it saves.
Run the numbers
This assumes a fixed rate and equal monthly payments for the whole term, with no fees and no payment protection insurance.
How this works
The formula behind the payment
An instalment loan is fully amortised: each payment covers the interest accrued on the remaining balance plus a slice of principal. The payment is calculated so that the balance reaches zero exactly at the end of the term, which is why the split between interest and principal shifts every month.
Why the interest is front-loaded
Interest is charged on the balance outstanding, and the balance is at its largest at the start. Early payments therefore buy very little principal, and later payments buy a lot. That single fact explains why prepaying early is worth more than prepaying the same amount later, and why a loan refinanced near the end of its term saves almost nothing.
What this calculator leaves out
- Origination, administration or broker fees, which belong in the amount borrowed.
- Payment protection insurance, which is a cost even when it is described as optional.
- Prepayment penalties, which change the value of paying extra.
- Variable rates, which make the payment a moving target.
How to use the answer
Treat the payment as a ceiling rather than a target. Compare the total repaid across offers rather than the monthly figure, because a longer term almost always lowers the payment and raises the total.
Questions
Does this include fees and insurance?
No. It models principal and interest only. Add an origination fee to the amount borrowed, and treat payment protection insurance as a separate cost, because both change what you actually pay.
Why does a longer term lower the payment but cost more?
Spreading the same balance over more months reduces each payment while keeping the balance outstanding for longer, so more interest accrues over the life of the loan.
How accurate is the result?
It is an estimate based on the numbers you enter, assuming a fixed rate and equal payments with no fees. A lender's own cost of borrowing disclosure is the authoritative figure.
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We match, we do not lend. No amount, term or rate is promised on this page — the calculator only models the numbers you entered.
LoanGoose is a loan matching and comparison service, not a lender. We do not make loans, set rates or make credit decisions. We may earn a commission when you click or apply through our links. The lowest rates are only available to the most qualified applicants.
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Lending rules and benchmark rates
The sourced rules these calculators assume.
Sources
- Financial Consumer Agency of Canada — debt and borrowing —
- Payday Lending Regulations, SOR/2024-114 —
- OSFI Guideline B-20 —
Every figure on this page is attributed to the publisher above. Where a value could not be verified against the publisher's own publication, it is left out rather than estimated.