Formula: Monthly Payment P = L × [c(1+c)ⁿ] / [(1+c)ⁿ - 1], where L is Loan Amount, c is Monthly Interest Rate (APR / 12 / 100), and n is Term in Months.
Taking out a loan—whether for a car, personal expenses, or a mortgage—requires a clear understanding of your monthly financial commitment and the total cost of borrowing.
The Loan Calculator computes the fixed monthly payment and totals the amount of interest paid over the life of a loan. It assumes standard fixed-rate compounding and amortization.
Knowing your monthly payment helps you align borrowing with your personal budget, while checking the total interest cost helps you evaluate if a loan is affordable in the long term.
To make evaluations transparent, the calculator provides a summary of total payments, total interest, and allows you to adjust interest rates and terms dynamically.
Example inputs and outputs using the calculator logic.
Quick links to similar calculators.
Answers to help you use the calculator correctly.
Amortization is the process of spreading out a loan into a series of equal periodic payments. Over time, a higher percentage of your payment goes toward paying off the principal (the original loan amount) and less goes toward interest.
You can lower total interest by choosing a shorter loan term (which increases your monthly payment but reduces borrowing time) or by paying extra principal whenever possible.
This calculator is designed for fixed-rate loans, where the interest rate remains constant throughout the loan term.