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 — a fixed payment that covers both interest and principal over the loan term.

M = P × [ i(1+i)^n ] / [ (1+i)^n − 1 ]
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 paid, since you're borrowing the money for longer. A shorter term raises the monthly payment but reduces total interest significantly.

Frequently asked questions

What's the difference between APR and interest rate?

The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) usually includes additional fees, giving a fuller picture of the loan's true annual cost.

Does paying extra each month reduce total interest?

Yes — any extra payment goes directly toward the principal, which reduces the interest charged on future payments and can shorten the loan term.