Calculate Annual Loan Payments
Calculate your monthly and annual payments for a loan or mortgage (annuity loan).
What are annual loan payments?
Annual loan payments are the total costs you pay each year for a loan or mortgage. They usually consist of interest and principal repayment. With an annuity loan, you pay the same amount every month.
How are annual loan payments calculated?
The monthly payment for an annuity loan is calculated using the formula:
M = P × [r(1+r)^n] / [(1+r)^n − 1]
Where:
- P = loan amount
- r = monthly interest rate (annual interest rate / 12)
- n = total number of months
The annual payment is then: monthly payment × 12.
When should you use this calculator?
- When calculating mortgage payments
- For personal loans
- When comparing interest rates
- For financial planning
Frequently asked questions
Is this gross or net?
The tool calculates both gross annual payments and an estimate of net annual payments based on the tax rate entered. The net calculation is an estimate based on the interest in the first year.
Can I also calculate other types of loans?
This tool is based on an annuity loan.