Loan calculator
Enter the amount, the rate and the term to see the monthly payment, total interest and a payment schedule.
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Monthly payment
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- Amount borrowed
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- Total interest
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- Total paid
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- Paid off in
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Payment schedule
How each year's payments split between interest and the loan balance.
| Year | Interest | Principal | Balance left |
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Show every month
| Month | Payment | Interest | Principal | Balance left |
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How the monthly payment is worked out
Most car loans, personal loans and fixed-rate mortgages are paid back in equal monthly payments. Each month the lender charges interest on the balance still owed: the yearly rate divided by 12. The rest of the payment goes to the balance. Early on most of the payment is interest; by the end almost all of it pays down the loan.
The payment is P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r is the yearly rate ÷ 12 ÷ 100, and n is the number of months. For 25,000 at 7% over 5 years: r = 0.005833, n = 60, so the payment is 495.03 a month and the total interest is 4,701.82.
| Loan | Amount | Rate | Term | Monthly payment | Total interest |
|---|---|---|---|---|---|
| Car loan | 25,000.00 | 7% | 5 years | 495.03 | 4,701.82 |
| Personal loan | 10,000.00 | 12% | 3 years | 332.14 | 1,957.18 |
| Personal loan | 5,000.00 | 10% | 2 years | 230.72 | 537.42 |
| Car loan | 30,000.00 | 8% | 6 years | 526.00 | 7,871.71 |
| Mortgage | 200,000.00 | 6% | 30 years | 1,199.10 | 231,677.04 |
| Mortgage | 200,000.00 | 6% | 15 years | 1,687.71 | 103,788.82 |
The two mortgage rows show how much the term matters: paying the same 200,000 over 15 years instead of 30 raises the monthly payment but cuts the total interest by more than half.
Paying extra each month
Any extra you pay goes straight to the balance, so less interest builds up every month after. On a 200,000 loan at 6% over 30 years, paying 200 extra a month clears it in 21 years instead of 30 and saves 79,800.86 in interest. Check with your lender that extra payments go to the principal and that there is no prepayment fee.
Interest rate or APR?
The interest rate is what the lender charges for the money you borrow. The annual percentage rate (APR) adds certain fees, such as origination charges, so it is usually a little higher. The US Consumer Financial Protection Bureau suggests comparing APR with APR when you shop between lenders (CFPB: comparing loans). To see the payment you'll actually make, enter the interest rate from your loan offer.
This calculator assumes a fixed rate and equal monthly payments. It doesn't include insurance, property tax, late fees or rate changes on a variable-rate loan, so the numbers from your lender may differ slightly. It is for planning only and is not financial advice.
Questions
How do I calculate the monthly payment on a loan?
Enter the amount, the yearly interest rate and the term above, and the monthly payment shows at once. By hand it is P × r ÷ (1 − (1 + r)−n), with r the yearly rate ÷ 12 ÷ 100 and n the number of months, as worked through in the section below.
Can I use it as a car loan calculator?
Yes. Enter the price minus your down payment and any trade-in as the loan amount, then the rate and term from the dealer or bank. Sales tax, registration and add-ons are only included if they are added to the loan, so put them in the amount if they are.
Does it work for a personal loan?
Yes. Personal loans are usually fixed-rate with equal monthly payments, which is what this calculator assumes. Use the APR from the offer, since it includes fees like an origination charge.
Can I use it for a mortgage or home loan?
For the loan part, yes: it gives the principal and interest payment on a fixed-rate mortgage. Property tax, home insurance and mortgage insurance are not included, so the full monthly cost from your lender will be higher.
Does it show an amortization schedule?
Yes. The Payment schedule under the calculator splits each year into interest, principal and the balance left, and "Show every month" opens the full month-by-month amortization table.
Can I add extra payments?
Yes. Open "Pay extra each month" and enter how much more you pay. The result shows how much interest and how many months of payments you save, and the schedule updates to match.
Which currency does it use?
Any. The math is the same in dollars, pounds, euros or rupees, so enter amounts in your own currency.
Why is so much of my first payment interest?
Interest is charged on what you still owe, and at the start you owe the most. As the balance falls, the interest part of each payment shrinks and the principal part grows.
How do I work out a loan with 0% interest?
Enter 0 as the rate. The payment is simply the amount divided by the number of months, with no interest.