Loan Calculator - Calculate Monthly Payments & Total Interest

Free online loan calculator to calculate monthly payments, total interest, and loan amortization. Perfect for personal loans, auto loans, and mortgages.

Loan Details

$

The total amount you want to borrow

%

The annual interest rate for the loan

years

The number of years to repay the loan

Payment Summary

Enter loan details to calculate payments

About Loan Calculations

This calculator uses the standard loan payment formula to determine your monthly payment, total interest, and total payment amount.

Formula: Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]

Where:

  • P = Principal loan amount
  • r = Monthly interest rate (annual rate ÷ 12)
  • n = Total number of payments (years × 12)

Note: This calculator assumes a fixed interest rate and equal monthly payments. Actual loan terms may vary. Consult with your lender for exact payment amounts.

Frequently Asked Questions

How do I calculate monthly loan payments?

Monthly payments are calculated using the formula: P × [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly interest rate, and n is total payments.

What factors affect my loan payment?

Your loan payment is affected by the loan amount (principal), interest rate, loan term, and any fees or insurance included in the payment.

What's the difference between APR and interest rate?

The interest rate is the cost of borrowing money, while APR (Annual Percentage Rate) includes the interest rate plus other fees and costs.

How can I reduce my monthly payment?

You can reduce monthly payments by increasing the loan term, making a larger down payment, improving your credit score for better rates, or refinancing.

What is loan amortization?

Loan amortization is the process of paying off a loan through regular payments over time, where each payment covers both principal and interest.