The loan calculator is the most-used tool before a borrowing decision, but many consumers use it without understanding what it shows.
Quick answer
Formula: M = P × (r × (1+r)^n) / ((1+r)^n − 1). Nominal interest doesn't include fees; APR includes everything. Use our calculator.
Mathematical formula
For 47,500 lei loan over 60 months at 8.79% nominal: monthly payment 982 lei. Total to pay 58,920 lei. With 2% origination + 0.3% monthly admin fee: APR rises to ~11.18%, total cost 13,620 lei.
Bogdan Băicu, financial journalist: "A reader, Andrei, 39, engineer in Iași, refinanced 47,500 lei loan. Used our calculator to compare 3 offers. Same nominal interest 8.9-9.2% but different fees yielded costs differing by 1,940 lei. Chose ING with 9.68% APR, total saving 5,285 lei net."
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Frequently asked questions
What's the monthly loan payment formula?
For loans with equal payments: M = P × (r × (1+r)^n) / ((1+r)^n − 1), where M = monthly payment, P = principal, r = monthly interest rate, n = number of months.
Does APR differ from nominal interest?
Yes. Nominal interest is only the capital cost. APR includes interest plus all mandatory fees. For a loan with 8.79% nominal, APR can be 9.42-11.73% depending on fees.
Does the calculator show APR or nominal interest?
Our calculator shows monthly payment on entered nominal interest, plus APR estimate if you input fees. For official personalised APR, request SECCI from the lender.
Can I use the calculator for any loan type?
The calculator works most accurately for equal-payment loans (standard annuity formula). For variable-rate loans (mortgages), it estimates at current rate, but the future depends on index evolution.
How do you compare offers with the calculator?
For each offer enter the same sum and period, plus the offer's specific interest and fees. The calculator shows monthly payment and total cost. Side-by-side comparison shows directly which offer is more advantageous cumulatively.