Loan Calculator
Estimate the monthly payment and total interest on a fixed-rate loan. Enter the loan amount, rate, and term to compare borrowing scenarios quickly.
Calculate your payment
Currency in your local units
Enter loan amount, rate, and term to calculate.
How it works
What this result means
The monthly payment is the fixed amount due each month to fully repay the loan by end of term. Total interest is the extra cost above the amount borrowed. Early payments are mostly interest; later ones shift toward principal.
Formula:
M = P × [ r × (1 + r)^n ] / [ (1 + r)^n − 1 ]
Where:
M = monthly payment
P = principal (loan amount)
r = monthly interest rate (annual rate ÷ 12)
n = total payments (years × 12)
- Divide the annual rate by 12 to get the monthly rate (r)
- Multiply the loan term in years by 12 to get total payments (n)
- Plug P, r, and n into the formula
- The result is your fixed monthly payment
Example
$20,000 at 6.5% for 5 years: r = 0.065 ÷ 12 ≈ 0.00542, n = 60. Monthly payment ≈ $391. Total interest ≈ $3,480.
Use this tool for
- Comparing loan offers with different rates or terms
- Estimating whether a monthly payment fits your budget
- Seeing how term length changes total interest
Common questions
- How is the monthly loan payment calculated? The monthly payment uses the standard amortization formula: M = P - [r(1+r)^n] / [(1+r)^n ' 1], where P is principal, r is the monthly interest rate (annual rate / 12), and n is the number of payments.
- Does this calculator work for car loans and personal loans? Yes. Any fixed-rate loan with a fixed term can be calculated with this tool"car loans, personal loans, and other installment loans use the same math.
- Why does my result differ from the lender's quote? Lenders may include fees, insurance, or use a different compounding assumption. This calculator shows the principal-and-interest portion only; always confirm with your lender.