How is the monthly loan payment calculated?
The calculator uses the standard amortization formula: the loan is split into equal monthly payments, each covering part of the principal and part of the interest. Early payments are mostly interest; over time, more goes to the principal.
Before taking a loan
Always look at the total you'll pay, not just the monthly payment — a longer term means a lower payment but much more interest. Try different terms in the calculator and compare the total interest.
⚠️ For guidance only. Actual figures depend on your bank's terms (admin fees, insurance, interest method).