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Monthly repayment uses the amortisation formula: M = P[r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is total payments. Each payment is fixed, but the split between interest and principal shifts — early payments are mostly interest, later payments are mostly principal.

The interest rate is purely the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus all associated fees — origination fees, arrangement fees — expressed as a single annual percentage. APR gives a truer picture of the total cost of a loan. Always compare loans using APR, not just the headline interest rate.

Yes — extra payments reduce your principal faster, cutting future interest charges. Every extra $100 you pay today saves more than $100 in total interest. However, some lenders charge an early repayment penalty (typically 1–3% of remaining balance). Check your loan agreement before making extra payments.

A secured loan is backed by collateral (car, home). Because the lender can seize the asset if you default, secured loans have lower interest rates. An unsecured personal loan has no collateral, so lenders charge higher rates to compensate for increased risk. Car loans and mortgages are secured; most personal loans are unsecured.

Look at three numbers: monthly payment (affects cash flow), total interest paid (true cost), and APR (apples-to-apples across lenders). A lower rate over a longer term can actually cost more in total interest than a higher rate over a shorter term. Enter both scenarios into this calculator to compare the full cost.