Personal loan repayment.
Monthly
—
Total interest
—
Total paid
—
Worked example
Take a $20,000 unsecured personal loan at 10 percent APR over 5 years. The calculator converts the rate to a monthly figure of 10 percent divided by 12, which is about 0.8333 percent, and spreads the loan across 60 monthly repayments. Using the standard amortising formula, the repayment comes to roughly $424.94 a month. Over the full 60 payments you hand back about $25,496, so the total interest is close to $5,496 on top of the $20,000 you borrowed. Because each repayment is fixed, the early months are mostly interest and the later months are mostly principal, but the monthly amount itself never changes.
| Item | Amount |
|---|
How it is calculated
The tool uses the standard amortising loan formula that Australian lenders apply to fixed personal loans. It takes the loan amount, divides the APR by 12 to get a monthly rate, and counts the term as a number of monthly payments. The monthly repayment is the amount that fully clears the loan over that many payments while charging interest on the balance still owing. Total paid is simply the monthly repayment multiplied by the number of payments, and total interest is that figure minus the original loan. If you enter a rate of zero, the calculator falls back to splitting the principal evenly across the term. Real-world loans may add establishment or monthly fees, which sit outside this interest calculation, so check the comparison rate when you compare offers.