Loan repayment calculator
Enter the amount, rate and term to get the monthly payment, the total interest and the full repayment schedule, including any interest-only months.
Month-by-month repayment schedule
| Month | Payment | Principal | Interest | Balance |
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How the payment is calculated
Most bank loans to Italian businesses use French-style amortisation: the payment stays the same for the whole term, but early payments are mostly interest and later ones mostly principal.
- Payment = amount × i ÷ (1 − (1 + i)−n), where i is the monthly rate (annual rate ÷ 12) and n the number of payments.
- Interest each month = outstanding balance × monthly rate.
- Principal = payment − interest.
Example: €50,000 at 6.5% a year over 60 months gives a payment of about €978 a month and about €8,700 of interest in total.
Nominal rate and APR
The nominal rate (TAN in Italy) covers interest only. The APR (TAEG) also includes arrangement fees, collection fees, guarantee fees and insurance: it is the figure to use when comparing offers.
Interest-only months
During the first months you pay only interest and the balance does not fall. It is common in guaranteed and subsidised loans: it eases the start, but the total cost rises.
Can your cash carry the payment?
Before signing, check that your cash can cover the payment in the coming months. CassaChiara reads Italian e-invoices and shows a 90-day cash forecast, with payments due in and out.
Try it free with your invoices See pricingFrequently asked questions
How is a loan payment calculated?
With French-style amortisation: amount × monthly rate ÷ (1 − (1 + monthly rate) to the power of minus the number of payments. The calculator does it for you.
What is the difference between nominal rate and APR?
The nominal rate covers interest only; the APR adds fees and charges and is the one to compare offers with.
Does it work for a mortgage?
Yes, for any fixed-rate loan with equal payments. With a variable rate the result holds only until the rate changes.
Is the data I enter sent anywhere?
No: the calculation runs in your browser.