Loan Calculator
Calculate your monthly loan payment, total interest paid, and full loan cost for any loan amount, interest rate, and repayment period.
Loan Details
Monthly Payment
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Total Payment
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Total Interest
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Principal
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Interest Rate
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Example Scenarios
Formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ−1] where r = monthly rate, n = months.
How Does Loan Calculation Work?
Loan repayment is calculated using the amortization formula, which spreads your payments evenly over the loan term. Each payment covers the interest accrued that month, with the remainder reducing the principal balance. Early payments are mostly interest; later payments become mostly principal.
Frequently Asked Questions
What happens if I pay extra each month?
Extra payments go directly toward the principal, reducing the total interest you pay and shortening your loan term. Even small additional amounts can save thousands in interest over the life of a loan.
What is APR vs interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus other fees and charges, giving a more complete picture of the total cost of the loan.
Should I choose a longer or shorter loan term?
A shorter term means higher monthly payments but less total interest paid. A longer term lowers monthly payments but you pay significantly more interest overall. Choose based on your budget and financial goals.