Loan Calculator
Calculate monthly loan payments, total interest cost, and view a complete amortization schedule. Whether you're planning a car loan, personal loan, or home loan, this calculator gives you a clear picture of your repayment plan.
How to Use This Calculator
- Enter the Loan Amount (the total amount you want to borrow).
- Enter the Annual Interest Rate (APR) offered by your lender.
- Set the Loan Term in years (e.g., 5 for a car loan, 30 for a mortgage).
- Click Calculate to see your monthly payment, total interest, and amortization schedule.
Formula
Where M = monthly payment, P = principal (loan amount), r = monthly interest rate (annual rate / 12), n = total number of months. This is the standard amortization formula used by banks worldwide.
Examples
Frequently Asked Questions
How do I calculate monthly loan payments?
Use the formula M = P × [r(1+r)n] / [(1+r)n − 1], where P is the principal, r is the monthly interest rate, and n is the number of months. Our calculator does this automatically.
What is an amortization schedule?
An amortization schedule shows each monthly payment broken down into principal and interest portions, along with the remaining balance after each payment. Early payments are mostly interest; later payments are mostly principal.
How can I reduce the total interest on my loan?
You can reduce total interest by: making extra payments toward the principal, choosing a shorter loan term, refinancing at a lower interest rate, or making bi-weekly payments instead of monthly.
Does a 1% interest rate difference really matter?
Yes, significantly. On a $300,000 30-year mortgage, the difference between 6% and 7% is over $72,000 in extra interest. Even small rate differences compound substantially over long loan terms.