Loan Calculator

$
%

Monthly

$0.00

Total Paid

$0.00

Total Interest

$0.00

What is a Loan Calculator?

A loan calculator computes your fixed monthly payment for any installment loan: auto loans, personal loans, student loans, or mortgages. Enter the amount you borrow, the annual interest rate, and the repayment term to see exactly what you owe each month and how much interest you will pay in total.

How It Works

The standard amortization formula:

M = P x [r(1+r)^n] / [(1+r)^n - 1]
P = principal (loan amount)
r = monthly interest rate (annual rate / 12)
n = total number of monthly payments

Example

A $20,000 car loan at 6.5% for 5 years:

  • Monthly rate: 6.5% / 12 = 0.5417%
  • Payments: 60 months
  • Monthly payment: $391.32
  • Total paid: $23,479 — interest paid: $3,479

Tips

  • A shorter term means higher monthly payments but far less total interest. A 3-year term vs. 5-year on the same loan can save hundreds in interest.
  • Even a small rate difference compounds over time. Compare offers: a 1% lower rate on a $20,000 loan over 5 years saves roughly $500.
  • This calculator assumes a fixed interest rate. Variable-rate loans will have payments that change over time.

Frequently Asked Questions

What is an amortized loan?

An amortized loan has equal monthly payments where each payment covers both interest and a portion of the principal. Early payments go mostly toward interest; later payments go mostly toward principal. The total payment stays constant throughout the loan term.

Does this include taxes and insurance?

No. This calculates only principal and interest (P&I). For mortgages, your actual monthly payment will be higher once property taxes, homeowner's insurance, and possibly PMI are added. Lenders call the full payment PITI.

What is APR vs. interest rate?

The interest rate is the annual cost of the loan principal only. APR (Annual Percentage Rate) includes the interest rate plus fees like origination charges, expressed as a single annual rate. APR is the better number for comparing loan offers.

How do extra payments affect the loan?

Extra payments reduce the principal faster, which means you pay less interest and pay off the loan earlier. Even small additional amounts each month can save significant interest over the life of the loan. Check that your loan has no prepayment penalty before doing this.