Personal Loan Calculator

What does this calculator do?

Calculate the monthly payment for a fixed-rate personal loan, the full amortisation schedule, and the total cost including fees. You can also simulate early repayments to see how much interest you could save.

Nominal rate vs APR: what's the difference?

The nominal annual rate is the base interest rate charged on the loan. The APR (Annual Percentage Rate) also factors in the arrangement fee and allows you to compare loans from different lenders on a like-for-like basis. Lenders in Spain are required to display both figures.

Common fees on personal loans in Spain

Personal loans in Spain can include an arrangement fee (typically 0–3% of the loan amount, charged upfront) and an early repayment fee. Under the Consumer Credit Act (Ley 16/2011), the early repayment fee is capped at 1% if more than one year remains, and at 0.5% if less than one year remains.

Early repayment: reduce term or reduce payment?

When you make an early repayment, you can choose to reduce the term (you finish earlier and pay less interest overall) or reduce the monthly payment (you free up cash each month). Reducing the term is generally the better option if minimising total cost is your goal.

Personal loan vs. mortgage: when to choose each

Personal loans and mortgages are the two most common forms of consumer finance, but they serve different purposes. A mortgage is secured against the property, which allows the lender to accept more risk and offer lower interest rates (typically 2–4% per year) and much longer terms (up to 30–40 years). A personal loan is unsecured, resulting in higher rates (typically 5–15% per year depending on the applicant's profile) and shorter terms (usually 1–10 years). For property purchase, a mortgage is always the most economical option. For consumer spending, smaller home improvements, vehicles, or emergencies that do not justify a mortgage, a personal loan is faster to arrange. A common mistake is financing recurring or low-value expenditure with long-term loans: the interest cost can easily exceed the value of what was financed.

How to get better terms on your personal loan

The interest rate on a personal loan is not fixed: it depends on your credit profile, the lender, and the amount requested. To get the best terms: maintain a clean payment history with no defaults or entries in credit risk registries; apply to the lender where you already have a relationship (salary account, insurance policies) to take advantage of loyalty pricing; compare multiple lenders including online banks, which often offer more competitive rates than traditional branches; request only the amount you need, as larger amounts can attract higher rates in consumer lending; and consider whether direct-debit of your salary or taking out linked insurance could meaningfully reduce the nominal rate. Always compare by APR, not by monthly payment — a lower payment may simply reflect a longer and more expensive term.

Frequently asked questions

What is an amortisation schedule?

It's the month-by-month breakdown of how much of each payment goes to interest, how much reduces the outstanding balance, and how much you still owe. Your lender should provide this when you take out the loan.

Are the results accurate?

Results are indicative and assume a fixed rate with no changes to the payment amount (except for early repayments). Your lender may apply specific conditions not reflected here.

Does the calculator include linked insurance?

No. Linked insurance (life, payment protection) adds an extra cost not included in these calculations. Ask your lender for the APR with and without insurance to compare the true cost.

How does the loan term affect the total cost?

A longer term means a lower monthly payment but a higher total interest cost. For example, a €15,000 loan at 8% over 3 years gives a monthly payment of around €470 and total interest of approximately €1,920. The same loan over 5 years drops the payment to €304/month but raises total interest to around €3,250. Extending the term improves monthly cash flow but significantly increases the total cost of borrowing.

Can I repay my loan early without a penalty?

The Spanish Consumer Credit Act (Ley 16/2011) caps the early repayment fee at 1% of the repaid amount if more than one year of the term remains, and at 0.5% if less. Some lenders offer loans with no early repayment fee — worth negotiating, especially if you plan to repay early. Use the early repayments section in this calculator to see exactly how much interest you could save.