CalcArcade.

Loan Calculator

Enter the amount you want to borrow, the yearly interest rate and how long you will take to repay it. You get the monthly payment, the total interest and a yearly table showing how each payment splits between principal and interest.

Your numbers

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

The monthly rate r is the yearly rate divided by 12, and n is the number of monthly payments. The fixed payment is M = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed. With a 0% rate the payment is simply P ÷ n.

Each month, interest is the remaining balance times r. The rest of the payment reduces the balance, so interest shrinks and principal grows over time. As a check, 300,000 at 6% over 30 years gives a payment of 1,798.65.

How to read your result

  • Monthly payment is the same every month for a fixed-rate loan.
  • Total interest is the extra you pay over the life of the loan. Total paid is the loan plus that interest.
  • The yearly schedule shows how early payments are mostly interest and later payments mostly principal.
  • The what-if table shows how a half-point higher rate or a shorter term changes the payment and the interest.

Common mistakes

  • Entering the monthly rate instead of the yearly rate (APR).
  • Ignoring fees. Origination fees and add-ons raise the real cost, and the APR on your offer includes them.
  • Choosing the longest term to get the lowest payment without checking the total interest.
  • Assuming extra payments are applied to principal. Ask your lender and say so when you pay.

Assumptions and limits

  • Assumes a fixed rate, equal monthly payments and the first payment one month after the loan starts.
  • Fees, insurance and taxes are not included. If a fee is added to the loan, add it to the amount.
  • A lender may round or schedule payments a little differently, so its figure can differ by a few cents. This is an estimate, not a loan offer.

Frequently asked questions

How is the monthly payment calculated?

The calculator uses the standard fixed-payment formula. The monthly rate is the APR divided by 12, and the payment is the amount that pays the loan off in exactly the number of months you chose.

Why does most of an early payment go to interest?

Interest is charged on the balance still owed. At the start the balance is at its highest, so the interest part of the payment is largest. Every payment lowers the balance, so the interest part falls and the principal part rises.

Does this include fees or insurance?

No. Origination fees, insurance and taxes are not part of the result. If a fee is rolled into the loan, add it to the loan amount. When you compare lenders, the APR can include some fees, which makes it a fairer comparison than the rate alone.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Loan amount ($) = 25000; Interest rate (APR %) = 6.5; Loan term (years) = 5.

  • Monthly payment $489.15
  • Total interest $4,349.22
  • Total paid $29,349.22
  • Number of payments 60
  • Final payment October 2031

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.