Monthly payment, total repaid and total interest on an annuity loan.
An annuity payment is M = P × i / (1 − (1 + i)^−n), where P is the amount borrowed, i is the monthly interest rate (the annual rate divided by 12) and n is the number of payments. The payment is the same every month, but its composition shifts: interest dominates at the start, principal at the end. This calculator uses exactly that formula.
The total overpayment is the difference between everything you pay and the amount you borrowed — the interest paid across the whole term. Borrow €10,000 and repay €12,400 in total, and the overpayment is €2,400. It is the figure that shows the price of the term most clearly: a longer term means a smaller monthly payment and a larger overpayment.
No. This calculator covers principal and interest only. Arrangement fees, account maintenance, property or life insurance and other bank costs are not included, so the real annual percentage rate of charge (APRC) is usually higher than the interest rate you type in. When comparing offers, look at the APRC rather than the headline rate.
The term cuts both ways. A longer term spreads the principal over more payments, so the monthly figure falls — but interest accrues for longer, so the total overpayment rises. A shorter term does the opposite. Enter the same amount with different terms and the trade-off between the two numbers becomes visible immediately.