Reviewed by: David Chen, CFA — Senior Financial Analyst
This amortisation loan calculatorcaculator helps determine missing loan variables using flexible multi‑variable computation.
Amortisation Loan Calculator
Amortisation Loan Calculator Formula
M = L × [ r(1+r)^n / ((1+r)^n − 1 ) ]
L = M × [ ((1+r)^n − 1 ) / ( r(1+r)^n ) ]
r = interest rate per month
n = number of months
L = M × [ ((1+r)^n − 1 ) / ( r(1+r)^n ) ]
r = interest rate per month
n = number of months
Formula Source: investopedia.com
Variables
- L — principal loan amount
- R — annual interest rate
- T — loan duration in years
- M — monthly payment
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What is amortisation loan calculator?
An amortisation loan calculatorcaculator evaluates structured repayment schedules where monthly payments cover both principal and interest over time.
It helps borrowers compare loan options, interest implications, and long‑term repayment behavior.
How to Calculate amortisation loan calculator (Example)
- Enter any three variables (L, R, T, M).
- The missing variable is solved automatically.
- Review the detailed breakdown in the steps panel.
Frequently Asked Questions (FAQ)
Does amortisation reduce interest? Yes, each payment reduces interest owed over time.
Can I solve any missing variable? Yes, any one variable can be computed from the others.
What if the numbers don’t match? The calculator warns if values are inconsistent.
Does it support long loans? Yes, up to 40‑year amortisation terms.