Loan Calculator
Calculate your monthly loan payment, total interest and total cost from the amount, interest rate and term.
Monthly payment
500.95
60 payments over 5 years
Principal25,000.00
Total interest5,056.92
Total paid30,056.92
Interest as % of loan20.2%
About the Loan Calculator
A loan calculator works out what a fixed-rate loan actually costs you. Enter how much you are borrowing, the annual interest rate, and how long you will take to repay it, and you get the monthly payment along with the total interest paid over the life of the loan.
Formula
M = P · r(1 + r)^n / ((1 + r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments.
Frequently Asked Questions
Fixed-rate loans use the amortization formula M = P·r(1+r)^n / ((1+r)^n − 1). Each payment is identical, but the split changes over time: early payments are mostly interest, later payments are mostly principal.
The interest rate is the cost of borrowing the principal. APR also folds in fees and charges, so it is usually slightly higher and is the better number for comparing loan offers.
Yes. Any amount above the scheduled payment goes straight to principal, which reduces the balance that future interest is charged on. Even small regular overpayments can cut years off a long loan.
A longer term lowers the monthly payment but leaves the balance outstanding for longer, so interest accrues over more periods. The monthly figure falls while total interest rises.
Related calculators
Mortgage Calculator
Estimate your monthly mortgage payment including principal, interest, property tax and home insurance.
Compound Interest Calculator
See how savings and investments grow over time with compound interest and regular contributions.
Tip Calculator
Work out the tip and split the bill between any number of people. Choose a percentage, round the total up or down, and see what each person owes.
Discount Calculator
Find the sale price and how much you save from an original price and a discount percentage.