Overview
A loan calculator helps you estimate the monthly payment and total interest before borrowing. Enter the loan amount, annual interest rate and term to see your monthly commitment and the total cost of the loan.
Formula
Monthly payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r = annual rate ÷ 12 ÷ 100.
How it works
Enter the loan amount
The principal you will borrow before interest.
Enter the rate and term
Use the annual rate and the term in years. The calculator converts them to monthly payments.
Review the cost
Look at the monthly payment and the total interest, not just the payment.
Worked examples
Example 1: $100,000 loan
$100,000 at 6% for 5 years gives a monthly payment of about $1,933 and total interest of about $15,997.
Example 2: zero interest
$12,000 at 0% for one year gives a $1,000 monthly payment and zero interest.
Frequently asked questions
Is the payment fixed for the whole term?
With a fixed-rate loan, yes. With a variable-rate loan, the payment may change.
What is the difference between the interest rate and APR?
The interest rate covers the core cost of borrowing, while APR includes interest and fees for a more complete annual cost.
Does early repayment save interest?
Usually yes, because interest is charged on the remaining balance. Check your bank's terms and any early repayment fees.
Does the calculator include insurance and fees?
No. Add insurance and administrative fees separately to get the full cost.
This calculator is for educational and informational purposes only and is not a substitute for professional advice.