How much do you want to borrow?
This is the money the bank will give you. For example, if you need ₦500,000 to fix your car or pay school fees, enter ₦500,000 here.
Drag the slider or type any amount directly into the box
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What does the bank charge per year?
Every year, the bank adds an extra charge on top of what you owe. This is shown as a percentage. Nigerian banks usually charge between 18% and 30%. Check your loan letter or ask your bank for the exact number.
Nigerian banks usually charge between 18% and 30% per year
% / yr
How many months will you take to pay it back?
This is how long you and the bank agree it will take to fully pay back the loan. Choosing more months means you pay less each month — but the bank charges you for longer, so you pay more overall.
More months = smaller monthly payment, but more total cost
months
You pay each month
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Total you pay back
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Bank's extra charge
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Your money vs the bank's charge
| Month | You pay | Goes to your loan | Bank's charge | Amount left to pay |
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Frequently Asked Questions
How does this loan calculator work?
Enter the amount you want to borrow, the annual interest rate your bank charges, and the number of months you will take to repay. The calculator uses a standard amortisation formula to show your fixed monthly payment, total repayment, and how much of that total is the bank's interest charge.
What interest rate should I use?
Use the annual percentage rate (APR) your bank or lender quotes you. In Nigeria, personal loan rates typically range from 18% to 30% per year, while mortgage rates can be lower. Check your loan offer letter or ask your bank directly for the exact figure.
Does this work for all types of loans?
This calculator is designed for fixed-rate, reducing-balance loans — the most common type offered by Nigerian banks. It works for personal loans, car loans, mortgage loans, and salary advance loans. It does not cover flat-rate interest calculations, which some microfinance lenders use.
What is the difference between flat rate and reducing balance?
With a reducing balance (used here), interest is calculated on the remaining loan balance each month, so you pay less interest as you pay down the loan. With a flat rate, interest is calculated on the original amount for the entire term, which makes the effective cost higher. Always ask your lender which method they use.
Can I pay off my loan early?
Many Nigerian banks allow early repayment, but some charge an early settlement fee (typically 1% – 5% of the outstanding balance). This calculator shows the standard schedule — if you plan to pay early, ask your lender about any penalties so you can compare the savings.
Why is the bank's extra charge so high?
The total interest you pay depends on three things: the loan amount, the interest rate, and the loan term. Longer terms mean more months of interest, which adds up quickly. Use the sliders above to see how shortening your term or reducing the rate dramatically lowers the total cost.
Is this calculator really free?
Completely free, with no sign-up required. NairaCalc is built to help Nigerians make better financial decisions without any cost.