Loan Calculator
Estimate your monthly payment, total interest, and total cost.
How to use the loan calculator
- Enter the loan amount, annual interest rate, and term in years.
- The monthly payment, total paid, and total interest update instantly.
Enter a loan amount, annual interest rate, and term to estimate your monthly payment, the total amount you'll pay back, and how much of that is interest. Works for mortgages, car loans, and personal loans.
How a loan payment is calculated
For a fixed-rate loan, the monthly payment is P × r / (1 − (1 + r)^−n), where P is the amount borrowed, r is the monthly interest rate (annual rate / 12), and n is the number of monthly payments. For example, $20,000 at 6% over 5 years is about $387 a month, or about $3,200 in total interest.
A longer term lowers the monthly payment but increases the total interest you pay. Comparing a few terms and rates before you sign helps you find the balance between an affordable payment and the lowest overall cost.
Frequently asked questions
How is the monthly payment calculated?
This calculator uses the standard fixed-rate amortization formula, spreading the loan evenly over equal monthly payments so it's fully paid off by the end of the term.
Does this include taxes, insurance, or fees?
No, this is a simple principal-and-interest estimate. Real loans (especially mortgages) often include extra costs like taxes, insurance, or origination fees.
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the money. APR also includes fees, so it's usually a bit higher and better for comparing offers.
Can I use this as a mortgage calculator?
Yes, for the principal and interest part. Add property tax, insurance and any fees separately to get your full monthly cost.