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Loan Calculator

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Enter the loan amount, interest rate and term to see your monthly payment, total interest and a month-by-month schedule.

Calculated in your browser. Your data is never sent to a server.

%
Unit
Interest method

Result

Enter the loan amount, rate and term.

Before signing for a personal or car loan, you need to know whether the payment fits your income and what the loan really costs. This tool covers the two common methods: reducing balance, used for most loans worldwide, and flat rate, common for personal finance in the Gulf.

With a flat rate we also show the equivalent APR, because 4% flat is not the same as 4% reducing, and the difference is large.

How the payment is calculated

  1. Reducing balance: the annual rate is divided by 12 and the standard annuity formula is applied. Each month interest is charged on the remaining balance only; the rest repays principal.
  2. Flat rate: interest = amount × rate × years; payment = (amount + interest) ÷ months.
  3. Each schedule row is rounded to the cent and the final payment is adjusted so the balance ends at exactly zero.

Formulas

  • Payment = P × i ÷ (1 − (1 + i)^−n)
  • P = loan amount, i = annual rate ÷ 12, n = months
  • Flat interest = P × rate × years

These are the standard finance formulas. Admin fees, insurance and other lender charges are not included.

Worked examples

100,000 at 5% reducing for 5 years

The payment is 1,887.12 a month, total interest about 13,227.51, total repaid 113,227.51. In month one, interest is 416.67 and 1,470.45 goes to principal.

Same amount at 4% flat

Interest is 100,000 × 4% × 5 = 20,000 and the payment is 2,000 a month. That flat rate is roughly 7.42% a year on a reducing-balance basis.

Frequently asked questions

What's the difference between flat and reducing interest?

Reducing interest is charged on the remaining balance, so it shrinks with each payment. Flat interest is charged on the full amount for the whole term, so it costs more at the same rate.

What is APR?

The reducing-balance rate that would produce the same payment. It lets you compare offers fairly.

Is the result binding?

No. It's an exact calculation for your inputs, but a lender's official offer may include other fees or terms.

Is my financial data sent anywhere?

No, everything is calculated in your browser.

Content last reviewed: November 1, 2026