Loan Calculator
Calculate the monthly payment and total interest for any fixed-rate loan in seconds.
$
%
yrs
Monthly Payment
$507
for 60 months
How to Use the Loan Calculator
Enter the loan amount, the annual interest rate (APR), and the loan term in years. The calculator instantly shows your fixed monthly payment, the total interest you'll pay, and the total cost of the loan.
The Loan Payment Formula
M = P × [ r(1 + r)ⁿ ] ÷ [ (1 + r)ⁿ − 1 ]
M = monthly payment · P = loan amount
r = monthly rate (annual ÷ 12) · n = number of months
M = monthly payment · P = loan amount
r = monthly rate (annual ÷ 12) · n = number of months
Example Calculation
For a $25,000 loan at 8% APR for 5 years: monthly rate = 0.667%, payments = 60, giving a monthly payment of $507, total interest of about $5,415, and a total cost of $30,415.
Monthly Payment by Term ($25,000 at 8%)
| Term | Monthly Payment | Total Interest |
|---|---|---|
| 3 years | $783 | $3,203 |
| 4 years | $610 | $4,296 |
| 5 years | $507 | $5,415 |
| 6 years | $438 | $6,559 |
Disclaimer: Estimates only, not financial advice. Actual loan terms vary by lender.
Frequently Asked Questions
How is a loan payment calculated?
A fixed loan payment uses the amortization formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the loan amount, r is the monthly interest rate (annual ÷ 12), and n is the number of monthly payments.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees and other costs, giving a fuller picture of the loan's true annual cost.
How can I pay less total interest?
Choose a shorter loan term, make extra payments toward principal, improve your credit score to get a lower rate, or make a larger down payment. Even small extra payments significantly reduce total interest.
What is an amortization schedule?
An amortization schedule shows each payment broken into principal and interest over the life of the loan. Early payments are mostly interest; later payments are mostly principal.
Does this calculator work for auto and personal loans?
Yes. Any fixed-rate installment loan — auto, personal, student, or home — uses the same amortization formula. Just enter the loan amount, rate, and term.
Is this calculator free?
Yes. Completely free, no sign-up, and all calculations run in your browser. Nothing is stored or shared.