Loan Calculator
Calculate the monthly payment, total interest and full amortization schedule for any fixed-rate loan — personal, auto, business or student.
How to use the Loan Calculator
- Enter your inputs into the Loan Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The loan payment formula
M = P · r(1 + r)^n / ((1 + r)^n − 1)
P is the loan amount, r is the periodic interest rate (annual rate ÷ payments per year), and n is the total number of payments. The same amortization formula applies to almost every fully amortizing loan.
Worked example
A $25,000 personal loan at 9.5% APR over 5 years gives r = 0.095/12 ≈ 0.007917 and n = 60. Plugging in: M ≈ $525.13 per month. Total paid: $31,508 — about $6,508 in interest over the life of the loan.
Frequently asked questions
What is loan amortization?
Amortization means each fixed payment is split between interest and principal. Early in the loan most of the payment goes to interest; over time the principal portion grows and interest shrinks.
How does the interest rate affect my payment?
A higher rate increases both the monthly payment and the total interest paid. Even a small rate difference can add up to thousands over a long-term loan.
Does paying extra reduce total interest?
Yes. Any extra payment applied to principal reduces the balance that future interest is calculated on, which lowers total interest and shortens the loan term.
What is APR vs. interest rate?
The interest rate is the cost of borrowing the principal. APR also includes origination fees, points and certain other charges, giving a more complete cost-of-borrowing figure.