Loan Calculator
Monthly payments, total interest and amortization
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The asking price of a loan is not its cost. A $20,000 car loan at 7% for five years doesn't cost $20,000 plus a bit — amortization means every monthly payment splits between interest and principal, with interest front-loaded early in the term. The standard formula M = P · r(1+r)ⁿ / ((1+r)ⁿ − 1) produces a fixed monthly payment, but only the totals tell the real story: how much interest you hand the bank over the life of the loan, and how much faster the debt dies if you shorten the term.
This free loan calculator computes monthly payments, total interest and full repayment cost instantly — equally suited to mortgages, auto loans and personal loans. Adjust rate or term and see the payment respond in real time, which makes comparison shopping between lender offers a thirty-second job instead of a spreadsheet project. The calculator models pure principal and interest; lender fees, insurance and taxes are extra and should be added separately when budgeting.
Why use Loan Calculator
Comparing lender offers
A 0.5% rate difference on a 30-year mortgage is worth tens of thousands — see the exact figure before signing anything.
Choosing a loan term
Compare a 36 vs 60 month car loan: the longer term lowers the monthly payment but raises total interest substantially.
Budgeting before a purchase
Enter the car or home price you're eyeing and learn the true monthly commitment before visiting a dealer or bank.
Evaluating early repayment
Seeing the total interest figure clarifies how much you'd save by paying the loan off ahead of schedule.
Pro tips
- Always compare APR, not the headline rate — APR folds in lender fees and is the honest comparison between offers.
- Shorter terms cost more per month but dramatically less overall: cutting a mortgage from 30 to 20 years can save six figures in interest.
- One extra payment per year (or rounding the payment up) shaves years off a long loan because overpayments hit principal directly.
- Run the numbers at +1–2% above the quoted rate to stress-test affordability against future rate increases on variable loans.
How to use Loan Calculator
- 1Enter loan amount, interest rate and term
- 2See monthly payment instantly
- 3Check total interest and total cost
Frequently Asked Questions
What formula is used?▾
The standard amortization formula: M = P · r(1+r)ⁿ / ((1+r)ⁿ − 1), where r is the monthly rate and n the number of months.
Does it include fees or insurance?▾
No — it calculates pure principal + interest. Add lender fees separately.