Loan Calculator
The fixed monthly payment on a loan, and how much of what you repay is interest.
Result…
How it's calculated
Payment = P × i ÷ (1 − (1 + i)^−n) i = yearly rate ÷ 12, n = number of monthly payments
A standard amortizing loan: the same payment every month, each one paying that month's interest first and the rest off the balance. Personal, student and most consumer loans work this way. Fees are not included; the APR calculator adds them.
Your numbers, step by step
About the Loan calculator
This loan calculator works out the fixed monthly payment on an amortizing loan: the kind where every payment is the same and each one pays that month's interest first, then reduces the balance. Personal loans, student loans and most consumer loans work this way. Enter how much you are borrowing, the yearly interest rate and the term, and it shows the monthly payment, the total interest and everything you will repay. Fees are not included. If your lender charges them, the APR calculator shows what they add. For a home loan with property tax and insurance, use the mortgage calculator.
How to use it
- Enter the “Loan amount” you are borrowing.
- Enter the yearly “Interest rate” the lender quotes.
- Enter the “Term” and choose whether it is in years or months under “Term in”.
- Read the monthly payment, then the total interest and total repaid below it; the steps show the formula with your numbers.
Worked example
Borrowing $20,000 at 7.5% a year over 5 years (60 payments) costs $400.76 a month. You repay $24,045.54 in total, so the loan costs $4,045.54 in interest. Over 3 years instead, the payment rises to $622.12 a month but the interest falls to $2,396.48.
Updated
Questions people ask
How do I calculate a monthly loan payment?
Use Payment = P × i ÷ (1 − (1 + i)^−n), where P is the amount borrowed, i is the yearly rate divided by 12 and n is the number of monthly payments.
Is a shorter loan term cheaper?
Yes, in total. A shorter term means higher monthly payments, but you pay interest for fewer months, so the total interest is lower. In the example above, cutting 5 years to 3 saves about $1,650.
Why does the loan cost more than the interest rate suggests?
The rate is charged every month on the balance still owed, over the whole term. The total interest grows with both the rate and how long you take to repay.
Does this include loan fees?
No. Origination and other fees are not part of the payment shown. Compare offers by their APR, which folds the fees into one yearly rate.
What if my interest rate is 0%?
The payment is simply the loan amount divided by the number of payments, with no interest. $10,000 over 12 months is $833.33 a month.