Loan calculator
Enter the amount, the interest rate and the term to see your monthly payment and what the loan costs in total.
- Total interest
- $2,075
- Total repaid
- $17,075
Yearly schedule
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $3,394 | $875 | $11,606 |
| 2 | $3,621 | $648 | $7,986 |
| 3 | $3,863 | $405 | $4,122 |
| 4 | $4,122 | $147 | $0 |
Estimates for information only. They are not financial advice.
How it works
- Choose the term in years or months.
- The calculator assumes a fixed rate and equal monthly payments.
- Fees and insurance are not included in this estimate.
Guide
How a loan payment is calculated
For a fixed-rate loan with equal monthly payments, the payment depends on the amount, the monthly interest rate and the number of payments. The lender computes one fixed amount that pays off the balance exactly at the end of the term. The calculator does the same with the standard annuity formula.
Total cost versus monthly payment
A low monthly payment can hide an expensive loan. Stretching the term lowers each payment but adds interest. Always look at the total repaid, not only the monthly figure, and compare offers using the same amount and term.
Paying off a loan early
Extra payments that go toward the principal cut the interest you owe in later months. Check with your lender whether early repayment fees apply. Even a small extra amount each month can shorten the loan noticeably.
Frequently asked questions
How can I lower the cost of a loan?
A shorter term or a lower rate reduces the total interest. A shorter term raises the monthly payment, so check that it fits your budget.
Is the interest rate the same as the annual percentage rate?
No. The annual percentage rate also includes fees and other mandatory costs, so it is usually higher. This calculator uses the nominal interest rate only.