DigiKitLoan Calculator - DigiKitApp
Calculate monthly loan payment and total interest.
When should you use this?
Use this to work out a loan's monthly installment, total interest cost, or to compare different term options.
When shouldn't you use this?
The result is an estimate based on the interest rate and term you enter; a bank's actual offer can differ due to extra costs (fees, insurance), wait for the bank's official offer before making a final decision.
Step-by-step
- Enter the amount you would borrow in Principal. Use the full loan amount, not what lands in your account after any upfront fees.
- Enter the rate in Annual rate %. If the lender quotes a monthly rate, which is common in Turkey, multiply it by 12 to get the nominal annual figure.
- Enter the number of monthly payments in Term (months), for example 24.
- Click Run and note both the monthly payment and the total interest.
Example
You are choosing between a 12-month and a 36-month term for the same amount at the same rate. Run both and the longer term gives a noticeably smaller monthly payment, while the total interest goes up. That happens because you carry the balance for longer and interest accrues each month on whatever principal is still outstanding. Having both results side by side lets you weigh a payment your budget can absorb comfortably against the extra interest a longer term costs you.
How is a loan instalment calculated?
For equal-instalment (annuity) loans the monthly payment is found with: Payment = Principal × r ÷ (1 − (1 + r)−n), where r is the monthly interest rate and n is the number of instalments. For example 100,000 principal, 3% monthly interest and 12 months gives about 10,046 a month and about 120,554 repaid in total. In the early instalments most of the payment is interest; the principal share grows over time.
What to watch in loan maths
- Bank offers include items besides interest such as fees, insurance and taxes; compare the total cost with the bank's repayment plan.
- Check whether the interest rate is monthly or yearly; dividing a yearly rate by 12 is not exactly right.
- A longer term lowers the instalment but raises total interest.
- This tool gives an estimate; apply to your bank for a binding offer.
Things to keep in mind
- Lenders may add taxes, arrangement fees and credit insurance on top of the advertised rate. In Turkey, consumer loans also carry KKDF and BSMV levies; check current rates with your bank.
- When comparing offers, the annual cost rate a lender discloses tells you more than the headline interest rate on its own.
- If you might repay early, read the early repayment terms in the contract, since they decide how much of the remaining interest you actually save.
- The calculation assumes a fixed rate. For a variable-rate loan, the output only describes the starting point.
Frequently asked questions
How accurate are the results?
Calculations use standard mathematical formulas; for official purposes (tax, loan applications, etc.) we recommend confirming current rates with the relevant institution.
Are the numbers I enter saved?
No, no numbers are sent to a server; the calculation happens entirely in your browser.
Can I use this on mobile?
Yes, the tool works smoothly on all screen sizes.