Loan Calculator
Work out your monthly payment, total interest, and total repayment on any fixed-rate loan.
How this calculator works
This uses the same amortization formula banks use for personal, auto, and business loans. See also the Amortization Calculator and Student Loan Calculator.
M = P × [ i(1+i)^n ] / [ (1+i)^n − 1 ]
M = monthly payment · P = loan amount · i = monthly interest rate · n = number of months
M = monthly payment · P = loan amount · i = monthly interest rate · n = number of months
How loan term affects total cost
A longer term lowers your monthly payment but increases total interest. A shorter term raises the monthly payment but reduces total interest significantly.
A worked example
A $20,000 loan at 7.5% costs about $401/month over 60 months with roughly $4,050 in total interest, versus about $626/month over 36 months with about $2,530 in interest.
Frequently asked questions
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR usually includes additional fees.
Does paying extra each month reduce total interest?
Yes — extra payments go toward principal and can shorten the loan term.