Loan Calculator
Enter a loan amount, interest rate and term to see the monthly payment, the total interest and a yearly breakdown.
What this tool does
A loan calculator works out the fixed monthly payment that repays a loan, with interest, over its term. Enter the amount borrowed, the annual interest rate and the length of the loan. The calculator shows the payment, the total interest paid and how much of each year goes to interest and principal.
Calculates the level monthly payment for a fixed-rate, fully repaying loan using the standard annuity formula, and totals the interest over the whole term.
Builds a year-by-year table of what you paid, how much was interest and principal, and the balance left, which you can download as a CSV.
How to use it
- Choose a currency symbol if you want one in the results.
- Enter the amount you are borrowing.
- Enter the annual interest rate as a percentage.
- Enter the term in years, and any extra months.
- Read the monthly payment and total interest, and scroll to the yearly table. Use Download CSV to keep it.
Why use a loan calculator
Shows the total interest and the share of every repayment that is interest, so the real cost of the loan is visible and not just the monthly figure. Lenders usually quote the monthly payment, which hides the total cost. A 10,000 loan can cost very different amounts depending on rate and term, and a lower payment over a longer term usually means much more interest overall.
Why we built it
We built the loan calculator to show the total interest and the share of each repayment that is interest, so the real cost of a loan is visible, not just the monthly figure. The amortization calculator gives the full schedule, and the APR calculator includes fees in the rate.
If your task goes further, try the Simple Interest Calculator, the Auto Loan Calculator and the Car Lease Calculator.
If your task goes further, try the Depreciation Calculator.
Who this tool is for
- Borrowers comparing personal loan offers
- Students of finance
- Anyone checking a lender's quoted repayment
When to use it
- Comparing loan offers with different rates or terms.
- Checking what you can afford before you apply.
- Seeing how much interest a longer or shorter term really adds.
- Planning a car, education, home improvement or personal loan.
How it is calculated
The payment is P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the monthly rate (annual rate ÷ 12) and n is the number of monthly payments. With a 0% rate the payment is simply P ÷ n.
Worked example: 10,000 at 5% over 5 years has r = 0.05 ÷ 12 and n = 60, giving a payment of about 188.71. Over 60 payments that is 11,322.74, so the interest is about 1,322.74.
Early payments are mostly interest and later ones mostly principal. That is why paying a loan off early saves more than the remaining payments alone would suggest.
What you enter, and what you get back
| Item | Details |
|---|---|
| Loan amount | The amount you borrow, before any fees. |
| Interest rate | The annual rate as a percentage. APR may include fees; use the nominal rate if you want pure interest. |
| Term | Years plus months, converted to a number of monthly payments. |
| Result | Monthly payment, total interest, total repaid and a yearly table. |
Issues you may run into
| What you see | Why it happens | What to do |
|---|---|---|
| Payment differs from the lender | The lender adds fees, insurance or uses a different compounding rule. | Ask for the rate and any fees, and compare like with like. |
| Result shows a dash | A required field is empty or zero. | Fill in amount, rate and term. |
| Rate seems high | APR and nominal rate were mixed up. | Use the interest rate on its own for this calculation. |
A worked example
These are the values the calculator opens with, so you can see exactly what it does with them. Change any value on the page and the result updates; the figures below come from the same calculation.
| Input | Value |
|---|---|
| Currency symbol | $ (dollar) |
| Loan amount | 25000 |
| Annual interest rate | 6.5 % |
| Term | 5 |
| Term | 0 |
With those inputs, the calculator returns:
- Monthly payment: $489.15
- Total interest: $4,349.22
- Total repaid: $29,349.22
- Number of payments: 60
- Interest as share of repayment: 14.8%
Assumptions and limitations
- Assumes a fixed interest rate and equal monthly payments.
- Does not include arrangement fees, insurance or early-repayment charges.
- Interest is compounded monthly, as most loans do; some products differ.
- It is an estimate for planning, not a loan offer.
Frequently asked questions
How do I calculate my monthly loan payment?
Enter the amount, the annual interest rate and the term. The calculator applies the standard formula P × r ÷ (1 − (1 + r)^−n) with a monthly rate and returns the payment.
How much total interest will I pay on a loan?
It is the monthly payment multiplied by the number of payments, minus the amount borrowed. The calculator shows it directly, along with the share of repayments that is interest.
Does a longer loan term cost more?
Usually yes. A longer term lowers the monthly payment but increases the number of payments and the total interest paid.
What is the difference between APR and the interest rate?
The interest rate is the cost of borrowing the money. APR also includes certain fees, so it is a better comparison figure but a less direct input for this calculation.
Can I download the repayment schedule?
Yes. Press Download CSV to save the year-by-year breakdown as a spreadsheet file.