Loan Calculator

What a loan calculator does

A loan calculator estimates the fixed monthly payment on an installment loan — such as a personal, auto or home-improvement loan — together with the total interest and the overall amount you will repay. By entering only the amount borrowed, the annual interest rate and the term, you can see the true cost of borrowing before signing any agreement.

The formula behind it

The tool applies the standard amortization formula, P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12) and n is the number of payments. Every payment covers that month's interest plus a slice of the principal, so early payments are mostly interest and later ones mostly principal.

How to use this calculator

Enter the loan amount, the annual interest rate and the term in years, then press Calculate. You will instantly see the monthly payment, the total of all payments and the total interest. Adjust the term or rate to compare offers and gauge the impact on your monthly budget.

Tips for borrowers

Focus on the total interest, not just the monthly payment: a longer term lowers the monthly cost but usually raises the lifetime cost. A better rate or a larger down payment reduces both. When comparing lenders, use the APR, which folds in fees for a fairer comparison.