How loan repayments are calculated
When you borrow to fund equipment, stock or expansion, you repay the loan in equal monthly instalments — often called the EMI (equated monthly instalment). Each payment covers a slice of interest plus a slice of the principal, and although the total stays the same every month, the split shifts over time: early payments are mostly interest, later ones mostly principal. This calculator shows the full picture before you sign.
Enter the loan amount, the annual interest rate and the term in months or years. The tool applies the standard amortisation formula to return your fixed monthly repayment, the total interest you will pay over the life of the loan, and the total amount repaid. Seeing the total interest is often a surprise — a modest-sounding rate over several years can add a large amount to the headline loan, which is exactly the figure you want before comparing offers.
Small changes matter. A slightly lower rate, a shorter term, or a bigger deposit can each cut the total cost noticeably. A shorter term raises the monthly payment but lowers total interest; a longer term eases the monthly cash outflow but costs more overall. Use the calculator to balance an affordable monthly payment against the total you are willing to pay, and to check that the repayment comfortably fits your cash-flow forecast.
Always confirm the exact figures, fees and any early-repayment terms with your lender before committing — the annual percentage rate can include charges beyond the headline interest. Once a loan is running, Tallium tracks the repayments and interest in your books so your profit and cash-flow picture stays accurate.
Frequently asked questions
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