Finance tool

100% In-Browser

Loan Calculator

Estimate monthly loan payments, total interest, payoff timing, and the effect of extra monthly principal payments. Use it to compare personal loans, auto loans, fixed-rate repayment options, or other installment loans before you talk with a lender.

Presets:
This estimate assumes a fixed annual interest rate converted to monthly interest and does not include taxes, insurance, origination fees, closing costs, or future rate changes.

Result

Monthly Payment

Fixed rate

Required monthly payment

$1,580

Payment is principal and interest only.

Total Interest

$318,861

Total Paid

$568,861

Payoff Time

30 yr

Interest Saved

$0

Schedule

Amortization Preview

First year

Amortization preview showing the first 12 monthly payments and final payoff month.
MonthPrincipalInterestBalance
1$226$1,354$249,774
2$227$1,353$249,547
3$228$1,352$249,318
4$230$1,350$249,089
5$231$1,349$248,858
6$232$1,348$248,625
7$233$1,347$248,392
8$235$1,345$248,157
9$236$1,344$247,921
10$237$1,343$247,684
11$239$1,342$247,446
12$240$1,340$247,206
360$1,572$9$0

Guide

What Is a Loan Calculator?

A loan calculator estimates repayment amounts for installment loans. Enter the principal, annual interest rate, and loan term to calculate monthly loan payments, total repayment, and total interest before comparing loan offers or planning a budget.

Borrowers use an online loan calculator for personal loans, auto loans, fixed-rate mortgage principal-and-interest estimates, refinancing comparisons, and payoff planning. The relationship is straightforward: a larger principal, a higher rate, or a longer term usually increases total borrowing cost.

Method

How the Calculator Works

Loan amountThe principal balance used as the starting amount borrowed.
Interest rateThe annual rate is divided by 100 and then by 12 to estimate a monthly rate.
Loan termYears are converted to months by multiplying by 12 and rounding to whole months.
Extra monthlyAn optional extra amount is added to each month's principal payment.
Payment summaryThe result shows monthly payment, total interest, total paid, payoff time, and interest saved.
Schedule previewThe table shows principal, interest, and remaining balance for the first year and final month.

Formula

Loan Payment Formula

Monthly payment (EMI)

M = P x r(1 + r)n / ((1 + r)n - 1)

M is the monthly payment, P is the loan principal, r is the monthly interest rate, and n is the total number of monthly payments. The calculator uses this equivalent form in code: payment = principal x monthlyRate / (1 - (1 + monthlyRate)-termMonths).

If the interest rate is 0%, the calculator uses the simple formula M = P / n. Extra monthly payments are not used to compute the required monthly payment; they are applied afterward in the amortization schedule as extra principal.

Example

Example Calculation

Example inputs: loan amount $25,000, annual interest rate 6%, and loan term 5 years with no extra monthly payment.

  • Monthly rate: 6% / 100 / 12 = 0.005.
  • Total payments: 5 x 12 = 60 monthly payments.
  • Monthly payment: about $483.32.
  • Total payments: about $28,999.20.
  • Total interest: about $3,999.20.
The displayed calculator rounds currency to whole dollars, while the underlying formula uses the calculated decimal values.

Use

How to Use the Loan Calculator

  1. Enter the loan amount, or principal.
  2. Enter the annual interest rate as a percentage.
  3. Enter the loan term in years.
  4. Optionally enter an extra monthly principal payment.
  5. Review the automatically updated payment summary.
  6. Read the amortization preview to see principal, interest, and balance changes.

Results

Understanding the Results

Monthly paymentThe required fixed principal-and-interest payment before any extra monthly principal.
Total interestThe sum of interest charged across the generated amortization schedule.
Total paidThe sum of all scheduled payments, including extra monthly principal when entered.
Payoff timeThe number of months needed to reduce the balance to zero, shown as years and months.
Interest savedThe estimated difference between the regular schedule and the extra-payment schedule.
Amortization previewA month-by-month view of principal paid, interest charged, and remaining balance for selected rows.

Planning

Factors That Affect Loan Payments

Loan amountA larger principal increases both the payment and the interest base.
Interest rateA higher annual rate increases monthly interest and total borrowing cost.
Loan termA longer term can lower the monthly payment but often raises total interest.
Extra paymentsExtra monthly principal can shorten payoff time and reduce interest in this calculator.
Fixed ratesA fixed rate supports predictable monthly payment estimates.
Variable ratesVariable-rate loans may change over time, so this fixed-rate estimate may not reflect future payments.

Accuracy

Benefits, Limits, Tips and Common Mistakes

Benefits

  • Simplifies budgeting with a monthly payment estimate.
  • Helps compare loan options and repayment terms.
  • Estimates total repayment cost and interest cost.
  • Shows how extra principal may affect payoff time.

Limitations

  • Results are estimates, not lender offers.
  • Taxes, insurance, closing costs, and fees are not included.
  • Variable-rate loans may have different future payments.
  • Final approval and exact terms depend on the lender.

Tips for Accurate Results

  • Enter the correct annual interest rate, not a monthly rate.
  • Verify the financed amount after down payments or trade-ins.
  • Use the correct repayment term in years.
  • Compare several rates, terms, and extra-payment scenarios.

Common Mistakes

  • Confusing annual and monthly interest rates.
  • Entering months in the loan term field instead of years.
  • Ignoring lender fees or insurance costs outside the calculator.
  • Comparing loans with different repayment periods as if they are identical.
  • Assuming an estimate is the same as a lender-approved payment.

FAQ

Frequently Asked Questions

How does this loan calculator work?

It uses the standard fixed-rate amortized loan formula to estimate the required monthly principal-and-interest payment from the loan amount, annual interest rate, and loan term.

What is an EMI?

EMI means equated monthly installment. It is the fixed monthly payment used to repay an amortized loan over the selected term.

How is the monthly payment calculated?

For loans with interest, the calculator converts the annual rate to a monthly rate and applies the amortized payment formula. For a 0% loan, it divides principal by the number of months.

What is amortization?

Amortization is the process of paying down a loan with regular payments over time, with part of each payment going to interest and the rest reducing principal.

How does interest affect loan payments?

A higher interest rate increases the monthly payment and total interest paid because interest is charged on the outstanding balance each month.

Can I include extra payments?

Yes. The Extra Monthly field applies an added amount to principal each month, which may shorten payoff time and reduce total interest.

What is the difference between fixed and variable interest rates?

A fixed rate stays the same for the loan period being calculated. A variable or adjustable rate can change, so future payments may be higher or lower than this estimate.

Does this calculator include taxes or fees?

No. It estimates principal and interest only. It does not include taxes, insurance, origination fees, closing costs, late fees, or other lender charges.

Can I calculate mortgage payments?

You can estimate the principal-and-interest portion of a fixed-rate mortgage, but this page does not include property taxes, homeowners insurance, mortgage insurance, or escrow items.

Can I calculate auto loans?

Yes, if the auto loan uses fixed monthly principal-and-interest payments. Enter the financed amount, annual rate, and term in years.

Is this calculator accurate?

The math is accurate for the assumptions shown, but lender quotes can differ because of fees, rounding, payment dates, APR rules, and loan-specific terms.

Why is my lender's payment different?

A lender may include fees, insurance, taxes, payment timing, daily interest, escrow, or a different compounding and rounding method.

What loan term should I choose?

Shorter terms usually cost less total interest but require higher monthly payments. Longer terms lower the payment but often increase total interest.

Can I compare different loans?

Yes. Change the loan amount, rate, term, or extra monthly amount and compare the monthly payment, total paid, total interest, payoff time, and interest saved.

What is total interest?

Total interest is the sum of all interest portions in the generated payment schedule, excluding taxes, fees, and insurance.

What does interest saved mean?

Interest saved compares the regular schedule with the schedule that includes your extra monthly principal payment.

More Tools

Related Calculators

Percentage CalculatorScientific CalculatorUnit Converter

Glossary

Loan Terms

Principal
The amount borrowed before interest is added.
Interest Rate
The cost of borrowing expressed as a percentage rate.
Annual Percentage Rate (APR)
A broader yearly borrowing-cost measure that can include interest and certain fees.
EMI
Equated monthly installment, or the fixed monthly loan payment.
Monthly Payment
The recurring payment due each month for principal and interest in this calculator.
Amortization
Paying off a loan through regular payments over time.
Loan Term
The length of time scheduled to repay the loan.
Fixed Interest Rate
An interest rate that does not change during the period being calculated.
Variable Interest Rate
An interest rate that can change based on an index, lender terms, or market conditions.
Outstanding Balance
The remaining principal owed after payments are applied.

Sources

References

Financial Calculation Notice

Financial & Educational Disclaimer

Mathematical Estimate

This loan calculator provides estimates for informational and educational purposes only. It does not constitute financial, legal, tax, investment, or lending advice. Actual loan terms, payments, fees, interest charges, approval decisions, and payoff amounts may vary by lender and borrower profile. Consult qualified financial professionals before making borrowing decisions.

Calculations and transformations execute locally on your machine with full offline support. Always verify critical results.

View full legal disclaimer