About the Loan Calculator
Enter a loan amount, an annual interest rate and a term in years, and this loan calculator immediately shows your monthly payment, the total interest you will pay, and the total amount repaid over the life of the loan. It uses the same standard amortization formula that banks use for fixed-rate car loans, personal loans and mortgages, so the figures match what a lender would quote.
The real value is in comparison: nudge the term from five years to seven, or the rate from 6% to 5%, and watch all three numbers recalculate instantly. That makes it easy to see how much a longer term really costs in interest before you sign anything. Everything runs in your browser — your financial figures are never uploaded and no account is needed.
Features
- Monthly payment from amount, rate and term
- Total interest and total repaid shown together
- Standard amortization formula used by lenders
- Handles 0% promotional loans correctly
- Compare scenarios by tweaking numbers live
- Private — figures never leave your browser
How to calculate a loan payment
- Enter the loan amount you want to borrow.
- Enter the annual interest rate as a percentage.
- Enter the loan term in years.
- Read the monthly payment, total interest and total paid.
- Adjust rate or term to compare different offers.
Frequently asked questions
What is the monthly loan payment formula?
The standard amortization formula is M = P × r ÷ (1 − (1 + r)^−n), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments. This calculator applies it exactly, so results match lender quotes for fixed-rate loans.
Why is total interest so high on longer loans?
Each extra year adds twelve more payments during which interest accrues on the remaining balance. Stretching a 10,000 loan at 5% from five to ten years lowers the monthly payment, but roughly doubles the total interest. The calculator shows both figures so you can see the trade-off instantly.
Does the result include taxes, insurance or fees?
No. The calculation covers principal and interest only, which is the core of any fixed-rate loan payment. Property taxes, insurance premiums, origination fees and other charges vary by lender and product, so add those separately when budgeting for the true monthly cost.
What happens if I enter a 0% interest rate?
The calculator handles interest-free loans correctly: the monthly payment becomes simply the amount divided by the number of months, total interest shows as zero, and the total paid equals the amount borrowed. That is useful for 0% promotional financing on cars, furniture or electronics.
How can I lower my monthly payment?
Three levers reduce the payment: borrow less, secure a lower interest rate, or extend the term. Be aware that a longer term raises the total interest even as the monthly figure falls. Try each change in the calculator and compare the total paid line before deciding.