Loan Calculator Nigeria

Calculate monthly, quarterly or annual loan repayments and see the full amortization schedule. Find the maximum loan you can afford from a monthly budget. Includes an affordability check showing what percentage of your salary the repayments represent.

loan-calculator.tool
CBN MPR: ~27.5% | Commercial bank: 18–28% | NHF mortgage: 6%
YearsMonths
Quick Presets
Enter loan details to see repayment breakdown.

Standard Loan vs Max Loan from Budget

The calculator works in both directions. Standard Loan — enter the loan amount, interest rate and term to get the periodic repayment. Max Loan from Budget — enter the maximum repayment you can afford per month and get the largest loan amount that stays within that budget. Useful when shopping for a mortgage or car loan where you know your monthly limit before knowing the loan amount.

Amortization Schedule

Click "Show Amortization Schedule" to see the complete payment-by-payment breakdown — each period's payment split into the principal portion (which reduces what you owe) and the interest portion (which goes to the lender). In the early periods of any loan the interest component is larger; towards the end it flips. This is why paying off a loan early saves a disproportionate amount in interest.

Repayment Frequency

The calculator supports monthly, quarterly, semi-annual and annual repayments. Most personal and SME loans in Nigeria are monthly. Some agricultural and business loans are quarterly or semi-annual, aligned with cash flow cycles. Changing from monthly to annual repayments does not just divide by 12 — it changes the compounding and results in more total interest paid because interest accrues on the outstanding balance for longer between payments.

Nigerian Interest Rate Guide

Commercial bank personal loans: 18–28% per annum. SME and business loans: 20–28%. Mortgages from commercial banks: 15–22%. NHF (National Housing Fund) mortgages through FMBN: 6% per annum — significantly cheaper but limited to contributors. Microfinance banks: 30–60%. CBN Policy Rate (MPR) as of 2025: 27.5%. The default preset is 22%, a typical mid-range bank rate.

Frequently Asked Questions

Commercial bank personal loan rates typically range from 18% to 28% per annum. SME and business loans are 20–28%. Mortgage rates from commercial banks are 15–22%. The NHF (National Housing Fund) mortgage through the Federal Mortgage Bank of Nigeria (FMBN) is 6% — far cheaper, but requires you to have contributed to NHF through payroll deductions for at least 6 months. The CBN MPR (benchmark rate) was 27.5% in 2025, pushing all bank lending rates higher.
The widely used guideline is that total debt repayments should not exceed 30–35% of your net (after-tax) monthly income. Some lenders use up to 40%. Enter your monthly net salary in the affordability check field to see what percentage your loan repayment represents. Most Nigerian banks apply an income-to-repayment ratio test before approving loans — if repayments exceed 33% of net pay, the application is often declined or the amount reduced.
An amortization schedule is a complete table showing every payment over the life of the loan, broken into the principal portion and the interest portion. In the early months, most of each payment is interest because you owe the most. As the balance reduces, more of each payment goes to principal. The schedule shows exactly how much of the loan you have paid off at any point, which is useful for calculating early repayment savings.
Use the "Max Loan from Budget" mode. Enter the maximum monthly repayment you can comfortably afford, your expected interest rate, and your desired loan term. The calculator uses the reverse amortization formula to find the loan principal that produces exactly that monthly payment. This tells you the maximum loan amount before you speak to a bank — giving you negotiating context.
Yes, significantly. Most Nigerian bank loans have early repayment terms but even without a penalty, paying extra reduces your principal faster and therefore reduces the interest accruing on the remaining balance. Use the amortization schedule to see how much interest you are paying in any given period. Making an extra payment early in the loan term saves far more than the same extra payment at the end, because interest compounds on the outstanding balance.

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