Loan payment calculator
The monthly payment on a French-system loan is P · i / (1 − (1 + i)^−n), where P is the principal, i the monthly rate (the nominal rate divided by 12) and n the number of payments. For 20,000 € at 7% over 5 years the payment is 396.02 € and you pay 3,761.44 € in interest.
payment = P · i / (1 − (1 + i)^−n)
Updated: · Albea Systems
Result
- Principal€20,000
- Interest€3,761
Yearly schedule
| Year | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | €4,752 | €1,290 | €3,462 | €16,538 |
| 2 | €4,752 | €1,040 | €3,712 | €12,826 |
| 3 | €4,752 | €772 | €3,981 | €8,845 |
| 4 | €4,752 | €484 | €4,268 | €4,577 |
| 5 | €4,752 | €175 | €4,577 | €0 |
How it is calculated
Each month you pay interest on what you still owe, and the rest of the payment reduces the principal. At first almost all of it is interest and at the end almost all of it is principal, which is why paying money back early saves so much.
A 200,000 € loan at 3% over 25 years has a payment of 948.42 € and adds up to 84,526.79 € of interest. The calculator assumes a constant rate; if your loan is variable, the result holds until the next review.
Capital does this calculation on your device, with the same figures you see here.
Download on the App StoreFrequently asked questions
What is the formula for a loan payment?
In the French system, payment = P · i / (1 − (1 + i)^−n). P is the principal, i the monthly rate and n the number of months. It is the formula Capital uses.
What is the difference between the payment and the total paid?
The payment is what you pay each month. The total paid is the sum of all the payments: the principal plus the interest. It does not include fees or insurance; that is what the real APR is for.
Can I calculate a loan in months?
Yes. Enter years and months separately: 18 months is 1 year and 6 months.
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- Download on the App StoreCapital does this calculation on your device, with the same figures you see here.