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Loan Calculator

Calculate fixed-rate loan payments and total interest.

Loan amount

Interest rate (%)

Term (months)

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Enter your numbers

Your result will appear here.

What this loan calculator does

Estimate a fixed-rate loan payment, total interest and total payments before comparing financing options.

How to use the calculator

Enter the amount borrowed, annual interest rate and term. A lower rate or shorter term generally reduces total interest, while a longer term can reduce the required monthly payment but increase the total cost of borrowing.

How the calculation works

The standard fixed-payment amortization formula is used: M = P × [r(1+r)^n] / [(1+r)^n − 1]. When the rate is zero, the principal is divided evenly across the number of payments.

What the result means

Example: a $10,000 loan at 5% for 60 months has a payment of about $188.71 and total interest of about $1,322.60.

Important assumptions and limitations

Use the result as a comparison tool, not as a lender quote. APR can include fees in addition to the interest rate, so compare actual loan disclosures when available.

Frequently asked questions

How is the monthly loan payment calculated?
The calculator uses a fixed-rate amortization formula based on principal, annual interest rate and the number of monthly payments.

What happens at 0% interest?
The payment becomes the loan amount divided by the number of payments because no interest is charged in the model.

Does the calculator include fees?
No. Origination fees, late fees, insurance and other charges are not included unless reflected in the amount you enter.

Why is total interest useful?
Two loans can have similar monthly payments but very different total interest. Reviewing both helps compare the full borrowing cost.