Loan Calculator
Calculate monthly loan payments, total interest paid, and full loan amortization schedules for personal, auto, or business loans.
Fixed payment for 60 consecutive months.
Did this calculation save you time?
Student ProjectHi! I'm a student developer building Calculat in my spare time. I was tired of searching for basic math tools and having to click through 10 spammy popups, loan ads, and cookie trackers.
I keep this website 100% free, private, and ad-free. If this helped you with your homework, project, or finances today, bookmarking this page or telling a friend helps me keep building more free tools!
What Is a Loan Calculator?
A loan calculator determines fixed periodic repayment amounts necessary to fully pay off a borrowed principal amount plus interest over a designated term. It illustrates how early payments consist predominantly of interest, while later payments pay down principal.
How to Use This Calculator
- Enter the total amount borrowed (Loan Amount).
- Enter the lender's Annual Interest Rate (APR).
- Enter the Loan Term in years or months.
- Review the calculated fixed monthly payment, total interest paid over the life of the loan, and total repayment cost.
Fixed Monthly Loan Payment Formula
M = P \left[ \frac{r(1+r)^n}{(1+r)^n - 1} \right]Where M is monthly payment, P is principal balance, r is periodic monthly interest rate (annual APR / 12 / 100), and n is total count of monthly payments (years × 12).
Worked Example
Scenario: Borrow $20,000 for an auto loan at 6% interest for 5 years (60 months).
Monthly rate: 0.06 / 12 = 0.005.
Calculate multiplier: (1.005)^60 = 1.34885.
Monthly payment: 20,000 × [ (0.005 × 1.34885) / (1.34885 - 1) ] = $386.66.
Total cost: $386.66 × 60 = $23,199.36.
Tips & Key Notes
- Making one extra monthly payment each year or paying bi-weekly can significantly reduce total interest paid and shorten loan term.
- Beware of hidden origination fees and prepayment penalties when evaluating competing loan offers.
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule is a complete table showing each periodic payment, detailing the exact portion that pays down interest vs. principal, and the remaining balance after each installment.
How do extra payments affect my loan?
When extra payments are applied directly to principal, they reduce the balance that future interest is computed on, saving significant money and retiring the loan early.
Related Calculators
Explore similar toolsMortgage Calculator
Estimate your complete monthly mortgage payment including principal, interest, property taxes, homeowners insurance, HOA dues, and PMI.
Compound Interest Calculator
Calculate investment growth over time with compound interest, regular monthly additions, and detailed yearly amortization schedules.
Percentage Calculator
Quickly calculate percentages, find what percentage one number is of another, and compute percent changes.