💳 Loan Calculator
Calculate loan payments and total interest
How Loan Payment Calculation Works
Formula
M = P × [r(1+r)^n] / [(1+r)^n − 1]
- 1P = loan amount, r = monthly rate (annual rate / 12), n = months.
- 2Apply the standard amortization formula.
- 3Monthly payment stays constant throughout the loan.
- 4Each payment splits into principal and interest — interest decreases over time.
- 5Total interest = (monthly payment × months) − loan amount.
About Loan Calculator
Calculate monthly loan payments, total interest, and see a year-by-year amortization table. Works for personal loans, auto loans, student loans, and more.
Frequently Asked Questions
How does a longer loan term affect payments?
Longer terms mean lower monthly payments but significantly more total interest paid. A 5-year loan costs less overall than a 7-year loan at the same rate.
Should I pay extra on my loan?
Extra payments reduce the principal faster, which reduces total interest. Even small extra payments can save thousands over the life of a loan.
What is APR vs interest rate?
The interest rate is the cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus fees, giving a more complete cost picture.