Loan Calculator
Estimate your monthly loan payment from the amount, interest rate, and term — with total interest and total cost over the life of the loan.
Loan details
Enter the loan amount, annual rate, and term to see your monthly payment.
The Loan Calculator estimates the fixed monthly payment on an amortizing loan from the amount borrowed, the annual interest rate, and the term in years. It also reports the total interest and total cost over the life of the loan, which helps you compare offers and budget for repayments.
How to use the Loan Calculator
- Enter the loan amount (the principal you are borrowing).
- Enter the annual interest rate as a percentage.
- Enter the loan term in years.
- Read the estimated monthly payment, total interest, and total cost.
Frequently asked questions
- How is the monthly payment calculated?
- It uses the standard amortization formula M = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the principal, r is the monthly rate (annual rate / 12), and n is the number of monthly payments.
- Can you show a worked example?
- For a 20,000 loan at 6% annual over 5 years, the monthly rate is 0.005 and n is 60, giving a payment of about 386.66 per month, roughly 23,200 total and about 3,200 in interest.
- What is amortization?
- Amortization means each fixed payment covers the interest due that month plus a portion of the principal. Early payments are mostly interest, and the principal share grows as the balance shrinks.
- Does the estimate include fees or insurance?
- No, it covers principal and interest only. Origination fees, taxes, and insurance are not included, so your real cost may be higher than the total shown.