Loan Calculator
Enter the loan amount, annual interest rate and term — the monthly payment, total payment and total interest cost are calculated instantly.
Loan calculator
Calculation using the annuity (equal monthly) payment method.
How does the loan calculator work?
The loan calculator works with the annuity (equal monthly payment) method. In this method the monthly payment amount stays constant throughout the loan term, but the ratio of principal and interest within each monthly payment changes. In the early months the share of interest is larger; as the term progresses the share of principal increases.
How is the monthly payment calculated?
The monthly payment is found with the standard annuity formula: payment = Amount × i × (1 + i)ⁿ / ((1 + i)ⁿ − 1), where i is the monthly interest rate (annual rate divided by 12 and 100) and n is the number of months. When the rate is 0%, the payment is simply found by dividing the amount by the number of months. The calculator also correctly handles small decimal rates and large amounts.
What affects the monthly payment?
Three factors are decisive: the loan amount, the annual interest rate and the term. As the amount and rate increase, the monthly payment also increases. Extending the term reduces the monthly payment but increases the total interest cost — because the debt is held for a longer period. It is useful to compare all three indicators under different scenarios to choose the most suitable option.
How to use the calculator?
Enter the loan amount in AZN, and enter the annual interest rate and term (months). The result appears instantly: monthly payment, principal, total interest payment and total payment. To see the monthly breakdown in detail you can use the Loan Payment Schedule tool.
Frequently asked questions
What is the difference between annuity and differential payments?
With annuity the monthly payment is fixed; with differential the principal is divided equally and the payment decreases over time. This calculator uses the annuity method.
Does the calculation work when the rate is 0%?
Yes. When the rate is 0%, the monthly payment is found by dividing the loan amount by the number of months.
Does the calculator account for commission and additional costs?
This calculator only calculates the monthly payment based on interest. To see the real cost including commission and other charges, use the APR (FİFD) Calculator.
Note: This calculator and information are for estimation and informational purposes only and are not legal or tax advice. For accurate calculations and official confirmation, consult official sources or a specialist.