Loan Monthly Payment Formula Explained (with Examples)

For a loan of €20,000 at 4.0% interest, the monthly payment over 5 years is €368. The exact amount depends on the term and rate — see the full comparison table below.

Monthly payment for €20,000 loan

Term3%4%5%6%7%
2 yr€860€868€877€886€895
3 yr€582€590€599€608€618
5 yr€359€368€377€387€396
7 yr€264€273€283€292€302
10 yr€193€202€212€222€232
15 yr€138€148€158€169€180
20 yr€111€121€132€143€155

Annuity calculation, excl. fees.

Frequently asked questions

What is the monthly payment for a €20,000 loan?
At 4% interest over 5 years, the monthly payment is about €368. Over 10 years it drops to about €202.
How much total interest will I pay?
At 4% over 5 years you repay a total of about €22,100, of which €2,100 is interest.

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