How this loan calculator works
Enter how much you want to borrow, the yearly interest rate and how long you will take to repay it. The calculator assumes a fixed rate and the same payment every month, which is how most personal loans, car loans and mortgages work.
The monthly payment comes from the standard formula P × r ÷ (1 − (1 + r)−n). Here P is the amount borrowed, r is the monthly rate (the yearly rate divided by 12) and n is the number of payments. At a 0% rate the payment is just P ÷ n.
Reading the payment schedule
Each month the lender charges interest on the balance you still owe, and the rest of your payment reduces that balance. Early on the balance is large, so most of each payment is interest. As the balance falls, more of each payment goes to principal. Use the monthly view to see every payment, or download the CSV to open it in a spreadsheet.
Ways to pay less interest
- Pay a little extra each month. Try it in the extra payment box above.
- Pick a shorter term. The payment is higher, but the total interest drops a lot.
- Compare rates. One percentage point can change the total cost by thousands.
- Ask your lender about early repayment fees before sending extra money.
Frequently asked questions
How is a monthly loan payment calculated?
The payment is P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly payments. With a 0% rate the payment is simply P ÷ n.
What is an amortization schedule?
An amortization schedule lists every payment and shows how much goes to interest, how much reduces the balance, and what balance remains. Early payments are mostly interest; later payments are mostly principal.
How do extra payments save money?
Extra money goes straight to principal, so the next month’s interest is charged on a smaller balance. Over time this shortens the loan and cuts total interest.
Does this calculator include fees, taxes or insurance?
No. It covers principal and interest on a fixed-rate loan only. Origination fees, taxes, insurance and variable rates are not included, so treat the result as an estimate.
Is my data stored or sent anywhere?
No. Every calculation runs in your browser and nothing you enter is uploaded or saved on a server.