Loan Calculator
Compute the monthly payment, amount received after origination fee, total repayment, total interest and total finance charge.
Input Data
Results
At a glance:The Loan calculator estimates any amortising loan: monthly payment, amount received after the origination fee, total repayment, total interest and total finance charge. Total finance charge = total interest + origination fee, reflecting the true cost better than the nominal rate alone.
Formula
r = annual ÷ 12; n = years × 12.
Monthly = P × r × (1+r)^n ÷ ((1+r)^n − 1).
Origination fee = P × fee%; amount received = P − fee.
Total repayment = monthly × n; total interest = total repayment − P; total finance charge = total interest + fee.
$$r = \dfrac{\text{annual}\%}{12},\quad n = \text{years} \times 12$$$$\text{Monthly} = P \times \dfrac{r(1+r)^n}{(1+r)^n - 1}$$$$\text{Total Finance Charge} = (\text{Monthly} \times n - P) + P \times \text{fee}\%$$How to Use
- Enter the loan amount.
- Enter the annual rate, term and origination fee (0 if none).
- View monthly payment, amount received, total repayment, total interest and total finance charge.
Loan 100,000 at 6%, 1% fee (HK$1,000 deducted) — monthly, total interest and total finance charge by term
| Term | Monthly | Total interest | Total finance charge |
|---|---|---|---|
| 3 yr | 3,042 | 9,519 | 10,519 |
| 5 yr | 1,933 | 15,997 | 16,997 |
| 7 yr | 1,461 | 22,712 | 23,712 |
| 10 yr | 1,110 | 33,225 | 34,225 |
Case Studies
Case 1: The fee shrinks the amount received and hides the cost
Mr Wong borrows 200,000 at 8% over 5 years with a 2% origination fee deducted at disbursement.
Fee = 200,000 × 2% = 4,000; amount received only 196,000, but interest and payment are on the full 200,000: monthly ≈ 4,055, total interest ≈ 43,317, plus fee → total finance charge ≈ 47,317.
He receives only 196,000 yet pays interest on 200,000 and an extra 4,000 fee. Judging by '8%' alone understates the cost — the fee-inclusive APR is higher. This is why compare on total finance charge and amount received.
Case 2: Same rate, fee decides the cheaper one
Ms Chan gets two quotes: both 100,000 at 6% over 5 years (monthly ~1,933, interest ~15,997). Only the fee differs: bank A 0%, bank B 3%.
A: received 100,000, total finance charge ~15,997. B: fee 3,000, received only 97,000, total finance charge ~18,997.
Same rate, but B's 3% fee costs an extra 3,000 and less received. Never compare on rate alone — fold the fee into total finance charge.
FAQ
Why is the amount received less than the loan?
Some loans deduct the origination fee at disbursement, so the amount you actually receive = loan − fee, yet interest and payment are still on the full loan. The true cost is higher than the rate suggests; compare on amount received and total finance charge.
Total finance charge vs total interest?
Total interest is only the interest on the loan; total finance charge adds the origination fee and other upfront costs — a fuller picture of the loan's cost. Comparing on total finance charge is fairer than on the nominal rate.
Does a longer term ease the payment?
Yes, a longer term lowers the monthly payment, but the longer accrual raises total interest and total finance charge. Balance affordable monthly against total cost; don't lower the monthly at the price of much more interest.
Compare the nominal rate or the APR?
Use the Annual Percentage Rate (APR), not the headline nominal rate. The nominal rate only reflects interest, but the true cost also includes the origination/handling fee deducted upfront (so amount received < loan) yet interest is still on the full loan. APR folds interest and necessary fees into one comparable annualised rate. Two loans at 6% nominal, one with 0% fee and one with 3%, have very different APRs — the nominal rate misleads. Use the lender's APR and total repayment/fees list, and ask about any unlisted charges (insurance, prepayment penalty). HK's Money Lenders Ordinance caps rates; beware abnormally high ones. Actual APR and fees follow the lender's disclosure.
Does early repayment save interest; watch HK prepayment penalties?
Under amortising repayment, early (partial or full) repayment usually saves interest, because interest is on the remaining balance — paying principal early shrinks the base and later interest. But in HK, check: (1) prepayment/early-settlement fee or penalty period — some private/finance-company loans charge a fee that offsets part of the saving; (2) the origination fee is not refunded; (3) weigh saving vs fee — net saving only if positive, and bigger/earlier repayments help more; (4) keep an emergency fund. Get the exact early-repayment terms, then use the relevant calculator to estimate the saving. Terms per the contract.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.