Personal Loan Calculator
Calculate personal loan monthly repayment, total interest and total payment.
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Annual Repayment Composition: Principal vs Interest
At a glance:A personal loan is an unsecured consumer credit repaid by equal monthly instalments. The monthly payment is PMT = P × r ÷ [1 − (1 + r)^−n], where P is the loan amount, r is the monthly rate (APR ÷ 12) and n is the total number of months; total interest = monthly payment × months − loan amount. Compare products by the Annual Percentage Rate (APR), not the monthly flat rate.
Formula
Equal-instalment monthly payment: PMT = P × r ÷ (1 − (1 + r)^−n), r monthly rate (APR ÷ 12), n total months.
Total payment = monthly payment × months; total interest = total payment − loan amount.
$$PMT = P \times \dfrac{r}{1 - (1+r)^{-n}}, \quad r = \dfrac{APR}{12}, \quad n = \text{years} \times 12$$$$\text{TotalInterest} = PMT \times n - P$$How to Use
- Enter the loan amount and APR.
- Set the repayment term.
- Monthly repayment, total interest and total payment are shown instantly, with a yearly principal/interest breakdown on the side.
FAQ
Why look at the APR rather than the monthly flat rate?
A monthly flat rate understates the true interest cost because it is charged on the original principal; the APR already reflects interest on the remaining balance plus all fees, and is the better basis to compare loan products. Hong Kong's Code of Banking Practice requires authorised institutions to disclose the APR for loan and credit-card products.
Is there a legal cap on personal-loan rates in Hong Kong?
Yes. Under the Money Lenders Ordinance (Cap. 163), the effective annual rate (APR) on a loan must not exceed 48% per annum, beyond which it is unlawful and the agreement is unenforceable; an APR above 36% may be presumed a 'loan shark' transaction. This cap was lowered from the previous 60%/48% to 48%/36% with effect from 30 December 2022. Authorised banks are exempt from the Ordinance, but the HKMA expects their APRs generally not to exceed the relevant levels.
Is a longer repayment term always better?
A longer term lowers the monthly instalment and eases short-term cash-flow pressure, but you pay more total interest over the whole period. Strike a balance between monthly affordability and total interest cost, and keep enough emergency funds.
Is there a fee for early full repayment of a personal loan?
It depends on the loan contract. Some banks charge an 'early repayment fee' (a handling charge or a few months' interest) for settling the loan in full ahead of schedule. Before signing, confirm the early-repayment terms with the bank and weigh whether the interest saved outweighs the fee.
What is the basis of this calculator's formula?
The monthly repayment uses the standard equal-instalment (annuity) formula PMT = P × r ÷ (1 − (1 + r)^−n), the same method banks use for instalment loans. The rate-disclosure and cap references follow the HKMA Code of Banking Practice and the Money Lenders Ordinance. Results are for reference only; the actual APR and approval follow the bank's disclosure.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.