Loan Calculator
Calculate monthly loan payments and total interest for any loan amount, rate, and term.
Pay off your loan faster
Monthly Payment
$525.05
Principal & interest
Total Interest
$6,503
26% of the amount borrowed
Total Repaid
$31,503
Principal + interest
Payoff Time
5 yr
60 payments
Balance Over Time
How to use this calculator
- Enter the loan amount — the total you are borrowing, before any interest.
- Set the interest rate — the annual rate quoted by your lender.
- Choose the loan term — how many years you have to repay. A longer term lowers the monthly payment but increases total interest.
- (Optional) Add an extra monthly payment — any amount you plan to pay on top of the required payment. The calculator shows how much interest it saves and how much sooner the loan clears.
The monthly payment, total interest, and payoff time update instantly. Open the amortization schedule to see how each payment splits between principal and interest.
How it works
A fixed-rate loan is fully amortized — you pay the same amount every month, and the balance reaches exactly zero with the final payment. Each payment covers two things:
- Interest — charged on the remaining balance for that month.
- Principal — whatever is left of the payment after interest, which reduces the balance.
Because the balance is highest at the start, early payments are mostly interest. As the balance falls, more of each payment goes to principal. The total interest you pay is simply every payment added up, minus the amount you originally borrowed.
A longer term means smaller payments but more payments overall — so you pay more interest in total. A shorter term costs more each month but less over the life of the loan.
Frequently Asked Questions
How is a monthly loan payment calculated? ▾
A fixed-rate loan payment uses the amortization formula: M = P · r · (1 + r)^n / ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. Every payment is the same, but the split shifts over time — early payments are mostly interest, later ones mostly principal.
What is the difference between APR and interest rate? ▾
The interest rate is the cost of borrowing the principal. APR (annual percentage rate) includes the interest rate plus certain lender fees, so it reflects the true yearly cost of the loan. For a payment estimate, enter the interest rate; APR is mainly useful for comparing loan offers.
Does paying extra each month really save money? ▾
Yes — and often a lot. Any extra payment goes entirely toward principal, which shrinks the balance that future interest is charged on. That compounds: a small monthly extra can cut years off the loan and save thousands in interest. Enter an amount in the Extra Monthly Payment field to see the exact saving for your loan.
Is this calculator for any type of loan? ▾
It works for any fixed-rate, fully amortized installment loan — personal loans, student loans, and similar. For a car purchase, the Auto Loan Calculator adds trade-in, sales tax and fees. For a home, the Mortgage Calculator adds property tax, insurance and PMI. The underlying payment math is the same in all three.
Why does so much of my early payment go to interest? ▾
Interest each month is charged on the remaining balance, which is highest at the start. So early on, most of your fixed payment covers interest and only a little reduces the balance. As the balance falls, the interest portion shrinks and the principal portion grows — this is why the amortization schedule looks the way it does.