Loan Calculator
Calculate monthly loan payments, total payment, and total interest.
Loan Results
What Is a Loan Calculator?
A loan calculator helps you estimate the monthly payment required to repay a fixed-rate loan. Enter the loan amount, annual interest rate, and loan term to calculate an estimated monthly payment.
The calculator also shows the estimated total amount paid over the full loan term and the total interest paid.
Loan Payment Formula
Where:
- M = Monthly loan payment
- P = Principal loan amount
- r = Monthly interest rate as a decimal
- n = Total number of monthly payments
The annual interest rate is converted to a monthly rate by dividing it by 100 and then by 12. The loan term in years is multiplied by 12 to determine the number of monthly payments.
Example Loan Calculation
Suppose you borrow $25,000 at an annual interest rate of 7.5% for 5 years. With monthly payments and a fixed interest rate, the estimated monthly payment is approximately $500.00.
You can enter different loan amounts, interest rates, and repayment terms to compare estimated loan scenarios.
How Loan Payments Work
A fixed-rate loan payment generally includes both principal and interest. At the beginning of the loan, a larger portion of each payment may go toward interest. As the principal balance decreases, the interest portion generally decreases.
A shorter loan term usually results in higher monthly payments but may reduce the total interest paid. A longer term can reduce the monthly payment but may increase the total interest paid over the life of the loan.
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Loan Calculator FAQs
What does a loan calculator calculate?
It estimates your monthly loan payment, total payment, and total interest based on the loan amount, annual interest rate, and repayment term.
Does the calculator support a 0% interest rate?
Yes. When the interest rate is 0%, the loan amount is divided by the total number of monthly payments.
Can I compare different loan terms?
Yes. Try different loan terms and interest rates to see how they affect the estimated monthly payment and total interest.
Does this calculator include additional loan fees?
No. This calculator focuses on principal and interest. Additional fees, insurance, taxes and other charges are not included.
Does the Loan Calculator require registration?
No. The Loan Calculator is free to use and does not require registration.
What type of loan does this calculator assume?
This calculator assumes a fixed interest rate with regular monthly payments over the selected loan term. It does not account for changing interest rates or irregular payment schedules.