Loan Calculator
Work out the monthly payment on any fixed-rate loan, see how much interest you’ll pay in total, and get a month-by-month amortization schedule.
Results
Monthly payment
$500.95
Fees, insurance and taxes are not included unless they are part of the amount you borrow.
- Amount borrowed
- $25,000.00
- Total interest
- $5,056.92
- Total of payments
- $30,056.92
- Paid off in
- 5 years
Principal 83%Interest 17%
How this was calculated
Monthly rate r = 7.5% ÷ 12 = 0.006250. Number of payments n = 60.
Payment = P × r(1 + r)n ÷ ((1 + r)n − 1), where P = $25,000.00. Each month, interest is charged on the remaining balance and the rest of the payment reduces the balance.
Lenders round to the cent and some accrue interest daily, so your statement may differ slightly.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $4,281.58 | $1,729.81 | $20,718.42 |
| 2 | $4,613.97 | $1,397.42 | $16,104.46 |
| 3 | $4,972.16 | $1,039.22 | $11,132.29 |
| 4 | $5,358.16 | $653.22 | $5,774.13 |
| 5 | $5,774.13 | $237.25 | $0.00 |
The starting values are examples only, not current rates. Replace them with the figures from your loan offer.
What this loan calculator does
It estimates the regular monthly payment for a fixed-rate installment loan — the kind of loan you repay in equal monthly amounts over a set term. That covers most personal, auto, student and mortgage loans, as well as many small-business and equipment loans.
Along with the payment, you get:
- the total interest you’ll pay over the life of the loan,
- the total of all payments (amount borrowed plus interest),
- a yearly and monthly amortization schedule showing how each payment is split, and
- how much an extra monthly payment would save, and how much sooner you’d be debt-free.
How to use it
- Loan amount — the amount you are borrowing, not including any down payment.
- Interest rate — the yearly rate on your loan offer. Enter 0 for an interest-free loan.
- Loan term — how long you have to repay, in years or months. Choose the unit with the drop-down.
- Extra monthly payment (optional) — any amount you plan to pay on top of the required payment.
- Select Calculate payment. Change any value and calculate again to compare scenarios, or select Clear to start over.
How the payment is calculated
The calculator uses the standard formula for a fully amortizing loan with monthly payments and monthly compounding:
Payment = P × r(1 + r)n ÷ ((1 + r)n − 1)
P is the amount borrowed, r is the annual rate divided by 12, and n is the number of monthly payments. Each month, interest is charged on the remaining balance and the rest of the payment reduces the balance. Read how loan amortization works for a step-by-step example.
Example: how rate and term change the cost
The same $25,000 loan under four different rates and terms:
| Scenario | Borrowed | Rate | Term | Monthly payment | Total interest |
|---|---|---|---|---|---|
| 3 years at 7.5% | $25,000 | 7.5% | 3 years | $777.66 | $2,996 |
| 5 years at 7.5% | $25,000 | 7.5% | 5 years | $500.95 | $5,057 |
| 5 years at 10% | $25,000 | 10% | 5 years | $531.18 | $6,871 |
| 7 years at 10% | $25,000 | 10% | 7 years | $415.03 | $9,862 |
A longer term lowers the payment but increases the total interest, and a higher rate raises both. The lowest monthly payment is rarely the cheapest loan.
What affects your result
- Rate vs. APR. Your payment is based on the interest rate. The APR also includes fees, so it is better for comparing offers. See APR vs. interest rate.
- Fees. Fees that are added to the loan increase the amount borrowed. Fees deducted from what you receive raise the effective cost but not the payment.
- Extra costs. Mortgage payments often include taxes and insurance through escrow, which are not part of the loan payment.
- Interest accrual. Some lenders charge interest daily, so the exact split depends on when your payment arrives.
Limitations
Results are estimates for general information. They assume a fixed rate, equal monthly payments that pay the loan off by the end of the term, and no missed or late payments. The calculator does not model variable rates, interest-only or balloon loans, income-driven student loan plans, or credit cards. It is not a loan offer and does not reflect the rate you might qualify for. Read the full disclaimer.
Calculators for specific loans
Each one uses the same math, with fields and explanations for that kind of loan.
Guides
Frequently asked questions
How is the monthly loan payment calculated?
It uses the standard amortization formula for fixed-rate loans: Payment = P × r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the amount borrowed, r is the annual rate divided by 12 and n is the number of monthly payments. At 0% the payment is simply P ÷ n.
Is this loan calculator accurate?
For a standard fixed-rate loan with monthly payments, the results match the textbook formula to the cent. Your lender’s figures can differ slightly because of rounding, daily interest accrual, the timing of your first payment, fees or escrow.
Should I enter the interest rate or the APR?
Enter the interest rate if you have it, because it is what sets your payment. If you only know the APR, use that — the payment will be a slightly conservative estimate when the loan has fees.
Are my numbers saved or sent anywhere?
No. The calculation happens in your browser using JavaScript. Your loan details are not sent to a server and are not saved, so they disappear when you leave or refresh the page.
Does the calculator work for variable-rate loans?
It calculates a fixed rate. For a variable-rate loan, enter the current rate to see today’s payment, then try higher rates to see how the payment could change.
More answers on the FAQ page.
Before you sign
Run every offer through the calculator using the same amount and term, then compare the APR and the total of payments, not only the monthly figure. When you’re ready, your lender’s official disclosure gives you the exact numbers.
Back to the calculator