Loan Calculator

Find the monthly payment and total interest for any fixed-rate loan, with a yearly repayment schedule.

How to use the Loan Calculator

  1. Enter the amount you want to borrow.
  2. Enter the annual interest rate and the term in years and months.
  3. Read the monthly payment, total interest and total repaid.

How loan payments are calculated

Fixed-rate loans use the amortization formula:

Payment = P × r ÷ (1 − (1 + r)−n)

where P is the amount borrowed, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments. Borrowing 10,000 at 8% for 3 years gives r = 0.006667 and n = 36, so the payment is about 313.36 per month and the total interest about 1,281.

Comparing loans

  • A longer term lowers the monthly payment but increases total interest.
  • A lower rate reduces both.
  • Check the APR, which includes fees, when comparing offers.

Results are estimates for planning. They are not financial advice and do not include every fee a lender or provider may charge.

Frequently asked questions

How do I calculate a loan payment?

Multiply the loan amount by the monthly rate, then divide by 1 − (1 + monthly rate) raised to the negative number of payments.

What is the difference between interest rate and APR?

The interest rate is the cost of borrowing the principal. APR also includes lender fees, so it shows the true yearly cost.

Does paying extra reduce interest?

Yes. Extra payments reduce the principal, so less interest builds up and the loan ends sooner. Check that your lender has no prepayment penalty.

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