Monthly Payment Calculator
Calculate the monthly payment for any kind of loan: personal, car, appliance or other financing.
Tip: Always compare the TOTAL cost (principal + interest), not just the monthly payment — a lower payment over a longer term can cost much more in total.
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About this digital tool
The universal monthly payment calculator works for any type of loan or financing: personal, car, electronics, furniture or any purchase on instalments. Enter the amount, the annual interest rate and the term and instantly get the monthly payment, the total interest cost and the full amortization schedule. The formula is the annuity one: P × r ÷ (1 − (1 + r)^−n).
It serves for comparing financing offers in shops and banks in Albania and Kosovo: many offers show only the instalment, not the total cost. Try different terms to see the trade-off between the payment and the interest. The result is an estimate and does not include insurance, fees or extra charges; ask the provider for the effective rate.
How to use
- Enter the total financing amount
- Enter the annual interest rate
- Enter the term (months or years)
- See the monthly payment
- See the amortization schedule (principal vs interest each month)
Frequently asked questions
How is the monthly payment calculated?
PMT = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1], where P = amount, r = monthly rate (annual rate ÷ 12), n = number of months. E.g., €10,000 at 7% for 5 years = €198/month.
Does it include insurance and fees?
The basic calculator calculates principal and interest. For house/car loans, add mandatory insurance and fees on top of the monthly payment (usually +10-20%).
What happens if the rate is variable?
With a variable rate, the payment can rise or fall. Calculate with the current rate, but budget for a +2% increase to make sure you can afford it.
Are financing fees included in the monthly payment?
No, unless you include them yourself in the amount or the rate. Ask the provider for the arrangement fees and the effective rate for the real cost.