💳 Loan Calculator
What this loan calculator does
Enter the amount you want to borrow, the yearly interest rate and the number of months. The calculator returns the fixed monthly payment, the total you will repay, the total interest and the month the loan is paid off if you pay on schedule. It suits personal loans, car loans and any other loan with equal monthly payments. It runs in your browser and nothing you enter is sent anywhere.
The formula
The monthly payment is M = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the amount borrowed, r is the monthly rate (annual rate ÷ 12) and n is the number of months. With a 0% rate the payment is P ÷ n. Total repaid is M × n, and total interest is that minus P.
Worked example
Borrowing $10,000 at 7.5% over 60 months: the payment is $200.38, the total repaid is $12,022.77 and the interest is $2,022.77.
How term and rate change the cost
Same $10,000, same 7.5%, but 36 months instead of 60:
- The payment goes up to $311.06 (about $110 more a month).
- Total interest falls to $1,198.24, a saving of $824.53.
Back to 60 months but at 9.5% instead of 7.5%: the payment is $210.02 and the interest is $2,601.12, which is $578.35 more. A lower payment from a longer term feels cheaper each month but costs more overall, so compare the total as well as the payment.
Rate versus APR and fees
The calculator uses only the rate you type. Lenders often add an arrangement or processing fee, and some charge a penalty for paying early. The annual percentage rate (APR) is meant to fold fees into a single yearly figure so offers can be compared. If one lender quotes a rate and another quotes an APR, they are not the same thing. When you compare offers, enter the same amount and term and compare the total repaid, including any fees, not the headline rate. Check whether a loan can be repaid early without a charge.
Things to keep in mind
- The payoff date counts the number of months from today. Your lender's first payment date may shift it by a month.
- Interest here is calculated monthly on the remaining balance, the usual method for fixed-payment loans. Some products, such as certain flat-rate loans, work differently and give a much higher true cost than the quoted rate suggests, so check how the lender calculates interest.
- Extra payments toward the principal shorten the loan and cut interest. Check with your lender that they are applied to principal.
- The labels show dollars, but the sums work in any currency.
This tool is for information. Actual loan terms depend on the lender and your circumstances.
Sources
The payment formula is the standard fixed-rate amortisation formula. On APR and fees: US Consumer Financial Protection Bureau, "What is the difference between a mortgage interest rate and an APR?"