Loan Calculator
Free loan calculator: enter the loan amount, interest rate, and term to see your monthly payment, total interest paid, and the true cost of borrowing.
About this tool
Whether it is a car loan, a personal loan, or a student loan, the headline number is never the whole story. The interest rate and the repayment term decide how much you truly pay - sometimes far more than you borrowed.
Enter the loan amount, annual interest rate, and term in years, and this loan calculator shows your monthly payment and the total interest you will pay over the life of the loan.
How to use
Type the amount you want to borrow, the annual interest rate as a percentage, and how many years you will take to repay it.
Press Calculate Loan. You will see the monthly payment, the total of all payments, and the total interest - the true cost of borrowing. Shorten the term or lower the rate in the boxes to watch the interest shrink.
The math behind it
Loans use the amortization formula: monthly payment = P x r / (1 - (1+r)^-n), where P is the amount borrowed, r is the monthly rate (annual rate / 12), and n is the number of monthly payments.
Each payment covers that month's interest first, and the rest reduces the balance - which is why early payments are mostly interest and later ones mostly principal.