Loan calculator Ireland: monthly repayments, interest and APR

Enter the loan amount, interest rate and term to see your monthly repayment, the total interest and an estimate of the APR straight away. The calculator works for personal loans, car loans and mortgages, with equal monthly repayments or equal principal repayments.

How the monthly repayment is calculated

With a standard repayment (annuity) loan, every monthly repayment is the same. It is worked out with this formula:

M = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

• P is the amount borrowed,
• r is the monthly interest rate, i.e. the nominal annual rate divided by 12,
• n is the number of monthly repayments.

Example: borrowing €20,000 at 6% over 5 years (60 repayments) costs €386.66 a month. You pay €3,199.35 in interest, so €23,199.35 in total.

Each repayment is made up of interest and capital. At the start most of it is interest; as the balance falls, more of each repayment goes towards the capital. The repayment schedule below the calculator shows exactly how this works.

Equal repayments or equal principal

With equal repayments (annuity), the amount stays the same for the whole term, which makes budgeting easy. With equal principal repayments, you repay the same slice of capital every month, so the first repayment is the highest and it then falls steadily.

In the same example (€20,000, 6%, 5 years) the first equal-principal repayment is €433.33 and the last is €335.20. Total interest is €3,050.00, which is €149.35 less than with equal repayments because the balance falls faster.

Nominal rate and APR

The nominal rate is used to calculate interest. The APR (annual percentage rate) shows the true yearly cost of borrowing: it reflects monthly interest and fees such as an arrangement fee. That is why the APR is always a little higher than the nominal rate.

At a nominal rate of 6% with monthly repayments, the effective rate is about 6.17%. Add an arrangement fee of 1% (€200.00) and it rises to about 6.61%. When comparing offers, always compare the APR rather than the headline rate.

Monthly repayment on a €100,000 mortgage

The table shows the monthly repayment on a €100,000 repayment mortgage at different interest rates and terms.

A longer term lowers the monthly repayment but adds a lot of interest. On €100,000 over 25 years at 4%, the repayment is €527.84 and total interest is €58,350.44.

Fixed or variable rate

A fixed rate stays the same for the agreed period, so your repayment is predictable. A variable rate moves with a reference rate and can go up or down during the term. In Ireland, variable rates are set by the lender, while tracker mortgages follow the European Central Bank rate plus a fixed margin.

Before you borrow

• Compare the APR of different offers, not just the headline interest rate.
• Check every cost: arrangement fees, insurance, valuation and legal fees.
• Find out whether early repayment is allowed and what it costs.
• Leave room in your budget in case a variable rate goes up.

For more on your rights as a borrower, see the Central Bank of Ireland.

Indicative calculation. Your actual repayment, APR and repayment schedule are set out in the lender’s offer and credit agreement.