Loan Calculator

Calculate loan payments and interest for personal loans, auto loans, and more

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About This Calculator

The Loan Calculator helps you calculate monthly payments, total interest, and total cost for personal loans, student loans, and other installment loans. Use this tool to compare different loan options and understand the true cost of borrowing.

How It Works

  • 1

    Enter the total loan amount you want to borrow.

  • 2

    Input the annual interest rate offered by the lender.

  • 3

    Select the loan term (repayment period in years).

  • 4

    The calculator computes your monthly payment, total interest paid, and total cost using the standard loan amortization formula.

Formula Explanation

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). This standard amortization formula calculates fixed monthly payments.

Tips

  • Compare loans from multiple lenders to find the best interest rate.

  • Shorter loan terms result in higher monthly payments but lower total interest.

  • Consider your monthly budget when choosing a loan term.

  • Factor in origination fees and other loan costs when comparing options.

Common Uses

Personal Loan Planning

Calculate monthly payments for personal loans to consolidate debt or finance major purchases.

Loan Comparison

Compare different loan offers to find the most affordable option.

Budget Planning

Determine if you can afford the monthly payment before applying for a loan.

Interest Cost Analysis

See how much interest you will pay over the life of the loan.

Frequently Asked Questions

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