Calculator Inputs
Example Data Table
| Field | Example Value | Purpose |
|---|---|---|
| Loan Amount | 100,000 | Principal borrowed before optional financed fees. |
| Annual Interest Rate | 12% | Nominal yearly interest used to derive the effective payment rate. |
| Tenure | 24 Months | Total repayment duration. |
| Payment Frequency | Monthly | How often installment payments are made. |
| Compounding Frequency | Monthly | How often interest compounds each year. |
| Extra Payment | 250 | Optional additional principal reduction every installment. |
| Processing Fee | 500 | One-time administrative charge. |
| Insurance Fee | 350 | Optional service or protection charge. |
Formula Used
1) Effective annual rate
EAR = (1 + j / m)m - 1
Here, j is the nominal annual rate and m is the compounding periods per year.
2) Payment-period rate
i = (1 + EAR)1 / p - 1
Here, p is the number of payments per year.
3) Equated installment
A = P × [ i(1 + i)n ] / [ (1 + i)n - 1 ]
Here, P is financed amount, i is payment-period rate, and n is number of installments.
4) Zero-interest special case
A = P / n
5) Extra payment impact
Each extra payment is added to principal reduction, which lowers future interest and may shorten the schedule.
How to Use This Calculator
- Enter the loan amount and nominal annual interest rate.
- Choose tenure in months or years.
- Select payment frequency and compounding frequency.
- Add any extra payment you plan to make each installment.
- Enter processing and insurance fees, if applicable.
- Choose whether fees should be financed or treated as upfront costs.
- Set the loan start date to estimate the full payoff calendar.
- Press Calculate Installment to view the result, chart, and amortization schedule.
- Use the CSV or PDF buttons to download the output.
Frequently Asked Questions
1) What does an equated installment mean?
It is a fixed periodic payment that repays both principal and interest over a chosen term. Early payments contain more interest, while later payments contain more principal.
2) Why can total paid exceed loan amount by a lot?
Longer terms and higher rates increase cumulative interest. Fees, financed charges, and infrequent compounding can also raise the total borrowing cost shown by the calculator.
3) What happens when I add extra payment?
Extra payment reduces outstanding principal faster. That lowers future interest, may shorten the number of installments, and usually moves the payoff date earlier.
4) What is the difference between payment and compounding frequency?
Payment frequency controls how often you pay. Compounding frequency controls how often interest grows. When they differ, the calculator converts the nominal annual rate into an equivalent payment-period rate.
5) Should fees be financed or treated upfront?
If fees are financed, they become part of the principal and generate interest. If treated upfront, they do not affect installment size but still increase your total borrowing cost.
6) Does this work for zero-interest loans?
Yes. When the annual rate is zero, the calculator divides the financed amount evenly across the planned installments and still tracks any extra payments and fees.
7) Why does the final installment sometimes look smaller?
The last payment is adjusted when the remaining balance becomes smaller than the regular principal portion. This prevents overpayment and closes the loan exactly.
8) Can I use this for quarterly or annual repayments?
Yes. You can switch payment frequency to quarterly, semiannual, or annual. The calculator automatically recalculates the payment-period rate, installment amount, and schedule.