Loan Calculator

Loan Calculator: What a Banker Wants You to Know

During my banking career, one of the most common surprises I saw was customers realizing that a 500,000 TRY mortgage could cost over 750,000 TRY in total repayments. This loan calculator helps you understand the full cost of any loan before you walk into a bank.

How Is the Monthly Payment Calculated?

Loan payments are calculated using the Equal Installment (Annuity) method. Each monthly payment remains the same, but the proportion of interest vs. principal changes over time. In early months, most of your payment goes toward interest. In later months, more goes to principal. This is why paying off a loan early can save significant money on interest.

What Is an Amortization Schedule?

An amortization schedule shows exactly how much of each payment goes to interest, how much goes to principal, and what your remaining balance is after each payment. Banks are legally required to provide this to you. Use this calculator's amortization table to verify the accuracy of your bank's figures.

Understanding Interest Rates

Banks often advertise monthly interest rates instead of annual ones. A 2.5% monthly rate equals approximately 30% annually. This calculator uses annual interest rates for transparent comparison. Remember to also account for additional costs like origination fees, life insurance, and home insurance, which increase the true cost of a loan.

Export Your Amortization Table to Excel

After viewing your results here, you can use TabloYaz's AI feature to export a complete amortization schedule as a professional Excel file, ideal for financial planning or sharing with your accountant.