Loan Calculator
Enter the amount, the interest rate and the term. We show your monthly payment, the total interest you will pay and a year-by-year breakdown.
This calculator gives estimates for information only. It is not financial, tax or legal advice. Real results depend on lender terms, fees and local rules.
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The formula
Payment = P x r / (1 - (1 + r)^-n), where P is the loan amount, r is the monthly rate (annual rate / 12) and n is the number of monthly payments.
How a fixed-rate loan works
You borrow a sum and repay it with equal monthly payments. Each payment covers that month's interest first, and whatever is left reduces the balance. Early on, most of the payment is interest. Later, most of it is principal.
A worked example
Borrow 20,000 at 7 percent for 5 years. The monthly rate is 0.5833 percent and there are 60 payments. The payment works out to about 396.02 a month. Over five years you pay 23,761 in total, so the interest costs about 3,761.
Ways to pay less interest
- Shorter term: higher payments but much less interest overall.
- Extra payments: even a small amount each month shortens the loan.
- Better rate: a one percentage point cut on a long loan saves a lot, so compare lenders.
Check for fees and penalties
Some loans charge an arrangement fee or a penalty for early repayment. Those are not in the calculation, so add them to your total cost if they apply.
Examples to check
Type these into the calculator above to see how it behaves. Every result below was produced by the same calculator code that runs on this page.
| What you enter | What you get |
|---|---|
| Loan amount ($): 20000; Interest rate (% a year): 7; Loan term (years): 5 | Monthly payment (principal and interest): $396.02 |
| Loan amount ($): 10000; Interest rate (% a year): 12; Loan term (years): 3 | Monthly payment (principal and interest): $332.14 |
| Loan amount ($): 50000; Interest rate (% a year): 5.5; Loan term (years): 10 | Monthly payment (principal and interest): $542.63 |
Loan Calculator: frequently asked questions
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the money. APR also includes lender fees and some other charges, so it is a better way to compare offers. This calculator uses the interest rate you enter, so add fees separately if there are any.
Does paying extra each month really help?
Yes, a lot. Extra payments go straight to the principal, so you pay less interest on every later month. Try the extra payment box to see how many months and how much interest you save.
Is this financial advice?
No. It gives an estimate from the numbers you enter. Real offers depend on fees, tax and the lender or provider, so check the terms before you commit.
Is what I enter in this calculator saved or sent anywhere?
No. The calculation runs in your browser, so what you enter is not sent to our servers. We only count, anonymously, whether a tool ran successfully.
Is this calculator free to use?
Yes. It is free, needs no sign-up and has no usage limit.
Last reviewed: October 3, 2026