Calculate loan interest

Calculate loan interest | Monthly interest & effective interest rate calculator

This calculator is useful for:

• personal loans
• private loans
• credit cards
• installment payments
• repayments
• private financing

You see immediately:

• total interest
• monthly interest
• annual interest
• effective compound interest

This is how you quickly gain insight into the actual costs of a loan.

What is a fixed interest rate?

With a fixed interest rate, interest is calculated only on the original loan amount. Therefore, the interest rate does not increase along with the term.

Example:

• you borrow €1000
• you pay back €1500
• total interest = €500

The interest is hereby distributed linearly over the term.

What is compound interest?

With compound interest, new interest is always calculated on the outstanding amount including previous interest. As a result, the effective interest rate rises faster.

This is also known as:

• compound interest
• compound interest
• effective interest

called.

For longer maturities, it can the difference between fixed interest and compound interest can become significant.

How is the interest calculated?

The tool calculates:

• total interest
• monthly interest
• effective monthly interest rate
• annual interest rate
• effective annual interest rate

Based on:

• loan amount
• total amount to be repaid
• number of months

This is how you can easily compare different loans.

How do you calculate interest on a loan?

You calculate interest by dividing the difference between the loan amount and the total amount to be repaid by the loan amount and the term.

What is a normal monthly interest rate?

That depends on the type of loan. For regular loans, the interest rate is often much lower than for short-term loans or installment payments.

What is the effective interest rate?

The effective interest rate takes compound interest into account. As a result, it provides a more realistic picture of the true costs of