Loan Calculator Nigeria — Monthly Payment & Amortization Schedule

Calculate monthly loan repayments, total interest and full amortization schedule for any Nigerian bank loan. Supports any amount, rate and tenure.

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Interest as % of Loan

Amortization Schedule — First 12 Months

Month Payment Principal Interest Balance

How Loan Amortization Works

With an amortizing loan, each monthly payment stays the same, but the split between principal and interest changes over time. Early payments are mostly interest; later payments are mostly principal.

Formula: M = P × [r(1+r)&sup n;] / [(1+r)&sup n; − 1]

Where P = principal, r = monthly rate (annual ÷ 12), n = number of months.

Extended

Extended Calculator

More options, scenarios and visual breakdowns

See how extra monthly payments reduce your total interest and shorten your loan.

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Without Extra Payment With Extra Payment

Compare two loan offers side by side to find the better deal.

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ItemLoan ALoan BDifference

Based on your income, find out the maximum loan you can comfortably afford.

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Professional

Professional Calculator

Maximum detail for expert-level analysis

Amortization Expert Controls

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Cumulative Interest vs Principal (SVG Chart)

Cumulative Principal Cumulative Interest

Full Amortization Schedule

PeriodPaymentPrincipalInterestBalanceCum. Interest

Frequently Asked Questions

What are typical loan interest rates in Nigeria?
Nigerian commercial bank loan rates typically range from 20% to 30% per annum. The Central Bank of Nigeria (CBN) Monetary Policy Rate (MPR) influences these rates. Microfinance banks charge higher rates (30–60%), while the Bank of Industry (BOI) offers subsidised rates from 9% for qualifying SMEs.
How is monthly loan repayment calculated?
The standard formula uses the reducing balance (amortization) method: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly interest rate (annual rate ÷ 12), and n is number of months. Each payment covers interest first, then reduces principal.
What is the difference between flat rate and reducing balance?
A flat rate applies interest on the original loan amount throughout the tenure. A reducing balance rate applies interest only on the outstanding principal — which decreases as you repay. Reducing balance is always cheaper. Most Nigerian banks advertise flat rates; this calculator uses reducing balance (the correct method).
Can I pay off a loan early in Nigeria?
Most Nigerian banks allow early repayment, but some charge a prepayment penalty (typically 1–3% of outstanding balance). Check your loan agreement before making lump sum payments. Early repayment significantly reduces total interest paid.
What is a good debt-to-income ratio in Nigeria?
Financial advisors recommend that total monthly loan repayments should not exceed 30–35% of your monthly net income. Nigerian banks typically apply this threshold when assessing loan applications. If your total repayments exceed 40% of net income, consider reducing the loan amount or extending the tenure.

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