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Finance

Loan Calculator

Work out the fixed monthly payment on a personal loan, car loan or any amortizing loan, and see how much of what you pay goes to interest over the life of the loan.

$
The amount you borrow, before interest.
% APR
The annual rate quoted by your lender.
Term in

Results

Monthly payment$500.9560 monthly payments
Total interest$5,056.92
Total of payments$30,056.92
Where your money goes
  • Principal $25,000.00 83%
  • Interest $5,056.92 17%
Loan amount
$25,000.00
Interest rate
7.5% APR
Loan term
5 years
Interest as % of amount borrowed
20.2%
Amortization schedule (yearly)
YearPrincipalInterestBalance
1$4,281.58$1,729.81$20,718.42
2$4,613.97$1,397.42$16,104.46
3$4,972.16$1,039.22$11,132.29
4$5,358.16$653.22$5,774.13
5$5,774.13$237.25$0.00

How it works

  1. Enter the amount you plan to borrow.
  2. Enter the annual interest rate (APR) quoted by the lender.
  3. Enter the loan term in years or months.
  4. Read your monthly payment, total interest and the yearly amortization schedule.

Formula

M = P × r / (1 − (1 + r)^−n)

M is the monthly payment, P the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of monthly payments. When the rate is 0%, the payment is simply P ÷ n.

Example

You take out a $15,000 personal loan at 11.99% APR, repaid over 36 months.

Inputs

Loan amount
$15,000
Interest rate
11.99 % APR
Loan term
36
Term in
Months

Result

Monthly payment$498.1436 monthly payments
Total interest$2,933.15
Total of payments$17,933.15
Load this example into the calculator →

How amortization works

With an amortizing loan every payment is the same size, but the split changes over time. Early payments are mostly interest because interest is charged on a large outstanding balance. As the balance falls, more of each payment reduces the principal.

The schedule above rolls the monthly payments up into years so you can see how quickly the balance falls and how much interest you pay each year.

Frequently asked questions

How is a monthly loan payment calculated?

The standard amortization formula M = P × r / (1 − (1 + r)^−n) spreads principal and interest evenly across n monthly payments, where r is the monthly interest rate.

Does this loan calculator include fees?

No. Origination fees, insurance and other charges vary by lender. If a fee is added to the loan balance, include it in the loan amount to see its effect.

How can I reduce the total interest I pay?

Borrow less, choose a shorter term, secure a lower rate or make extra principal payments. A shorter term raises the monthly payment but usually cuts total interest significantly.

What is the difference between APR and interest rate?

The interest rate is the cost of borrowing the principal. APR also folds in certain fees, so it is usually a little higher. Using the APR here gives a closer estimate of the true cost.