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Ireland Personal Loan Calculator

Monthly repayment, total interest, and full amortisation for an Irish personal loan at a given APR and term.

Published

Written by PennyCompass Team

Monthly repayment and total interest on a personal loan.

Monthly repayment

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Total interest

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Total repaid

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Your breakdown

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Worked example

Take a 15,000 euro personal loan at 8.5% APR over 5 years. The monthly rate is 8.5% divided by 12, and there are 60 monthly payments. Running these through the standard amortisation formula gives a monthly repayment of about 307.75 euro. Across the 60 payments you repay roughly 18,464.88 euro in total, of which 15,000 euro is the original borrowing and about 3,464.88 euro is interest. The interest is around 23% of the amount borrowed at this rate and term. Stretching the loan over a longer term would lower the monthly payment but push the total interest higher.

How it is calculated

A personal loan amortises exactly like a mortgage, in equal monthly instalments that each cover the interest accrued that month first, with the rest reducing the balance. The monthly payment comes from the standard annuity formula: the amount borrowed multiplied by the monthly rate and a compounding factor over the number of months. The monthly rate is the APR divided by 12, and the number of payments is the term in years times 12. Early payments are mostly interest and later ones mostly principal, because interest is always charged on the remaining balance. Total interest is simply the sum of all payments less the amount you borrowed. When comparing offers, the APR is the figure to watch, since it folds in most fees alongside the headline interest rate.

Frequently asked questions

How is a personal loan repayment worked out?
A personal loan is repaid in equal monthly instalments that cover both interest and principal. Early payments are mostly interest; later ones mostly principal. The repayment depends on the amount borrowed, the APR, and the term. A longer term lowers the monthly amount but raises the total interest paid over the life of the loan.
Is the interest on a personal loan tax-deductible in Ireland?
No. Revenue does not allow a tax deduction for interest on a personal loan used for private purposes such as a holiday, car, or home furnishings. Interest relief on personal borrowing was phased out in Ireland. The one exception is a loan used wholly and exclusively for a trade or profession, where the interest may be deductible as a business expense under Section 81 of the Taxes Consolidation Act 1997.
What is the difference between APR and the interest rate on an Irish personal loan?
The interest rate is the annual cost of borrowing before fees. The APR (Annual Percentage Rate) is the broader figure required under the European Communities (Consumer Credit Agreements) Regulations 2010, which implements the EU Consumer Credit Directive in Ireland. The APR includes the interest rate plus most mandatory charges such as arrangement fees, so it is the correct figure to compare across lenders. Lenders regulated by the Central Bank of Ireland must quote the APR prominently in all advertising.
Are there early repayment charges on personal loans in Ireland?
Under the Consumer Credit Act 1995 as amended, Irish consumers have the right to repay a personal loan early at any time. For fixed-rate loans, the lender may charge a breakage fee to cover lost interest income, but this is capped and must be disclosed in the loan agreement. For variable-rate loans, lenders generally cannot charge a penalty for early repayment. Always check the specific terms before signing, and ask the lender for a written redemption figure if you plan to settle the loan ahead of schedule.

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Sources

  1. Revenue — Income Tax, USC and Tax Credits, Revenue (Office of the Revenue Commissioners), Ireland
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