Loan Calculator
Use this free loan calculator to calculate monthly repayment, total repayment, total interest, or even estimate your loan interest rate. It works well for both loan apps and bank loans.
What You Need to Know About Using Our Loan Calculator
This loan calculator is a powerful online tool that helps you to understand the true cost of borrowing money before you take out a loan. By providing the loan amount, interest rate, and repayment period, you can instantly see:
- Your monthly repayment
- The total repayment across the loan term
- The total interest you will pay
- The loan interest rates
This will allow you to make better financial decisions and avoid unfavorable loan terms.
See Also: List of loan apps approved by CBN
Why Use a Loan Calculator?
Imagine you want to borrow ₦500,000 but don’t know which lender or loan term to choose. With this loan calculator, you can test different repayment durations (e.g., 3 months, 6 months, or 12 months) and see how the monthly repayment and total cost of the loan will change.
This way, you’ll know exactly what you’re committing to, instead of being surprised by hidden charges later.
See Also: 30 Best Loan App in Nigeria 2025 Review
Understanding Credit Load
The credit load refers to the total amount of all loan repayments you owe monthly (if you have multiple loans). It’s important to calculate this so you don’t overburden your income.
How to calculate credit load:
Gather information on all your loans (amount, interest rate, term, and monthly payment).
Use the loan calculator to compute each monthly payment.
Add them together to see your total monthly loan obligations.
Example:
- Salary Loan = ₦50,000/month
- Car Loan = ₦30,000/month
- Credit Card = ₦10,000/month
- Total Credit Load = ₦90,000/month
If your total loan payments are too high compared to your income, it’s a red flag.
Loan Insurance and Extra Costs
Some lenders may offer or require loan insurance, such as life, health, or job loss coverage. The cost is usually a small percentage of the loan amount and is added to your monthly repayment.
Example:
- Loan Amount = ₦1,000,000
- Insurance Cost = 0.1% monthly = ₦1,000
- Loan Tenure = 60 months
- Total Insurance Cost = ₦60,000
Always confirm if insurance is optional or mandatory before signing your loan agreement.
Annuity Payments (Equal Monthly Installments)
Most loan apps and banks in Nigeria use annuity payments, also known as equal monthly installments (EMIs).
This means you pay the same amount every month, which includes both the principal and interest.
The formula is
A = (P × i) / (1 – (1 + i)^(-n))
Where:
- A = Monthly payment
- P = Loan amount
- i = Monthly interest rate (annual rate ÷ 12)
- n = Loan term (in months)
Don’t worry if this looks complex—our loan calculator does all the work for you instantly.
Differentiated Payments
Some Nigerian banks may use differentiated payments, where your repayment reduces gradually over time.
Here’s how it works:
Each month, you repay part of the principal and interest on the remaining balance.
The first few payments are higher, but they decrease as your debt reduces.
This option can save you money in the long run, but it may be harder to manage at the start due to higher initial payments.
How to Calculate Loan Overpayment
When you use the loan calculator, you can also see your overpayment—the extra money you pay on top of the original loan amount (which is the cost of interest + insurance, if any).
Example:
Loan Amount = ₦500,000
Total Repayment = ₦650,000
Overpayment = ₦150,000
This makes it easy to compare loans and choose the cheapest option.
Benefits of Using Our Loan Calculator
- Accuracy—Get instant results with no manual math.
- Transparency—Know the true cost of the loan before you apply.
- Comparison—Test different loan amounts, interest rates, and repayment plans.
- Flexibility—See how loan apps differ from bank loans.
Try It Now
Use our free loan calculator above to calculate:
- Your monthly repayment
- Your total repayment & interest
- Estimate your loan interest rate
This tool is designed for Nigerian users and works for both loan apps and bank loans.
See Also: Loan Apps with Low Interest Rates
Frequently Asked Questions About Loan Calculators
What is a loan calculator?
A loan calculator is an online tool that helps you determine your monthly repayments, total repayment, and total interest on a loan based on the loan amount, interest rate, and repayment term.
How do I calculate loan interest?
Simply enter your loan amount, interest rate, and loan term into the calculator. The tool will show you the total interest and how much extra you’ll pay compared to the original loan amount.
Can I calculate my loan interest rate if I only know my monthly repayment?
Yes. With our calculator, you can switch to Interest Rate Calculator mode by entering the loan amount, term, and monthly repayment. The tool will estimate your effective monthly interest rate.
Why should I use a loan calculator before borrowing?
A loan calculator helps you avoid surprises by showing the real cost of borrowing. It allows you to compare different lenders and choose the most affordable loan option.
What is the difference between flat rate and reducing balance?
Flat Rate (Loan Apps): Interest is calculated on the entire loan amount throughout the term, making payments higher.
Reducing Balance (Banks): Interest is calculated on the remaining balance each month, so payments reduce over time.
Which Loan Apps Can I Use the Calculator for?
The calculator is useful in all Nigeria digital lenders. You can use it to calculate the loan amount, interest rate, and the monthly repayment amount on the following apps:
- FairMoney
- Carbon (Paylater)
- Branch
- PalmCredit
- Okash
- Renmoney
- Aella Credit
- QuickCheck
- Migo
- KiaKia
- Kuda
- ALAT by Wema
- QuickCredit
- Access QuickBucks
- EaseMoni
- Page Financials
- Zervance
- Specta
- CredPal
- Umba
With this loan calculator, you can instantly calculate loan interest and repayment amount. See the difference between loan apps and bank loans. This loan calculator can help you to make a smart borrowing decision.
