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Nigeria Loan Calculator 2026

Calculate your monthly payment, total interest, and effective APR (fees included). Built around realistic Nigerian bank, digital lender, and subsidised loan reference rates.

🇳🇬 Nigeria · NGN · Updated May 2026
Monthly payment
₦55,913
Effective APR: 30.00% · Total cost: ₦1,341,908
Principal borrowed
₦1,000,000
Total interest
₦341,908
Origination fee
₦0
Total repaid (incl. fee)
₦1,341,908
Amortization schedule(24 months)
#PaymentInterestPrincipalBalance
1₦55,912.82₦25,000.00₦30,912.82₦969,087.18
2₦55,912.82₦24,227.18₦31,685.64₦937,401.54
3₦55,912.82₦23,435.04₦32,477.78₦904,923.76
4₦55,912.82₦22,623.09₦33,289.73₦871,634.03
5₦55,912.82₦21,790.85₦34,121.97₦837,512.06
6₦55,912.82₦20,937.80₦34,975.02₦802,537.04
⋮
19₦55,912.82₦7,699.37₦48,213.45₦259,761.37
20₦55,912.82₦6,494.03₦49,418.79₦210,342.59
21₦55,912.82₦5,258.56₦50,654.26₦159,688.33
22₦55,912.82₦3,992.21₦51,920.61₦107,767.72
23₦55,912.82₦2,694.19₦53,218.63₦54,549.09
24₦55,912.82₦1,363.73₦54,549.09₦0.00
Reference rates (NIGERIA)
CBN MPR: 26.50%
Commercial banks: 28–34%
Digital lenders: 60–360% APR
Subsidised: 9–20%
Carbon, FairMoney, Branch and Renmoney often advertise monthly rates of 5–30%. Annualised that is 60–360% APR — always confirm whether the rate quoted is monthly or annual before signing.
Verified: 2026-05-27

How Nigerian loan rates actually work

The CBN's policy rate — the MPR — is currently 26.50% (held at the 305th MPC meeting in May 2026). That is the floor around which every other Nigerian lending rate orbits. Three tiers of lending operate in Nigeria, at sharply different price points.

First tier: commercial banks. Premier Bank, GTBank, Access, Zenith, and UBA typically lend at 28–34% APR on personal and auto loans, usually secured against your salary or a deposit. Paperwork is heavy, but the cost is honest.

Second tier: digital lenders. Carbon, FairMoney, Branch, Renmoney and competitors typically advertise MONTHLY rates of 5–30%. Annualised (the real APR), that is 60–360% APR. This is the single most expensive piece of confusion for Nigerian borrowers. ALWAYS ask explicitly: "Is that rate monthly or annual?" before you sign.

Third tier: subsidised lenders. Bank of Industry (BOI), SMEDAN, Development Bank of Nigeria (DBN) and some state schemes offer 9–20% APR for MSMEs, start-ups, and certain targeted categories (women, youth, agriculture). Selection is competitive and usually requires collateral.

Worked examples (computed live)

LoanTermAPRMonthlyTotal interest
Personal ₦500k12 mo30%₦48,744₦84,923
Auto ₦2M36 mo25%₦79,520₦862,707
Home down ₦5M60 mo22%₦138,095₦3,285,674

Hidden costs Nigerian borrowers miss

The interest rate is not the total cost. Four items routinely inflate the real cost of a Nigerian loan. First, origination fees: typically 1–3% of principal, paid upfront. They do not appear in the monthly payment but they bump the effective APR — the calculator above estimates the bumped APR when you enter the fee.

Second, bundled insurance on auto and home loans — frequently added without transparency on the real cost. Third, late-payment penalties, often flat and cumulative, that can turn a 7-day delay into several thousand naira of arrears. Fourth, recurring admin fees (monthly or quarterly) that some lenders charge on top of the repayment. Always read the offer letter line by line before signing.

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FAQ

How do I calculate my monthly loan payment in Nigeria?

Use the standard amortizing-loan formula: PMT = P × (r × (1+r)^n) / ((1+r)^n - 1), where P is principal, r is the monthly rate (APR ÷ 12), and n is the number of months. The calculator above applies this automatically and produces a full amortization schedule, month by month.

What is the difference between APR and monthly interest rate?

An APR of 30% annualised is about 2.5% per month. But many Nigerian digital lenders quote in monthly terms — e.g. 10% per month. That is NOT 10% per year: annualised, it is about 120% APR. Always ask explicitly whether the rate you have been quoted is monthly or annual.

Are Carbon, FairMoney, Branch and Renmoney rates monthly or annual?

Mostly monthly. Carbon, FairMoney, Branch, and Renmoney typically quote 5–30% per month on short-term loans. In APR-equivalent terms, that is 60–360%. Read the fine print and run your own amortization before signing — many borrowers discover the true APR only when chasing the balance after a missed payment.

What is a good interest rate for a personal loan in Nigeria?

For a salaried employee with payslip evidence and a clean bank record, 25–32% APR from a commercial bank is competitive. Below 20% is very good (usually only available on subsidised BOI/DBN loans or employer payroll-linked products). Above 60% APR (3–5% per month) you are paying a real opportunity cost — compare offers before committing.

Reference rates last verified 2026-05-27. Bank, neobank, and govt lender rates change frequently — always confirm current rates with your lender. Educational only, not financial advice.