How Is an Instalment Calculated?
In equal-instalment (annuity) loans you pay the same amount each month; part covers interest and the rest the principal. This tool uses the standard annuity formula to estimate the monthly instalment, total repayment and total interest from the loan amount, annual interest rate and term. The most practical way to see a loan's true cost is to compare total interest with the principal.
How to Use It
- Enter the loan amount (principal).
- Enter the annual interest rate. If the bank quotes monthly, multiply by 12.
- Enter the term in months (e.g. 24).
Important Notice
The result is for information only and does not replace an official bank offer. Real repayment varies with taxes such as banking taxes, file/allocation charges, life insurance and the bank's interest method; so the bank's figure will be higher than this estimate. Always request an official payment plan from your bank for exact numbers. For interest and percentage operations, see our Percentage Calculator and for VAT our VAT Calculator.