Loan Calculator – Monthly Payment & Interest
Enter a loan amount, annual interest rate, and loan term to calculate your monthly payment, total amount paid, and total interest cost.
How to Use
- 1
Enter the loan amount in dollars
- 2
Enter the annual interest rate as a percentage
- 3
Enter the loan term in years to see your monthly payment and total cost
Frequently Asked Questions
How is the monthly payment calculated?
The monthly payment uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n – 1], where P is the principal, r is the monthly rate, and n is the number of payments.
What is total interest?
Total interest is the difference between the total amount you pay over the life of the loan and the original loan amount. It represents the cost of borrowing.
Does a longer term mean lower monthly payments?
Yes, a longer term reduces the monthly payment but increases the total interest paid. A shorter term costs more per month but saves significant interest over time.
What if the interest rate is 0%?
With a 0% interest rate, the monthly payment is simply the loan amount divided by the number of months. The total interest is zero.
Work out loan repayments
A loan calculator shows your regular repayment for any loan from the amount borrowed, the interest rate and the term. It also reveals the total interest you will pay over the life of the loan, not just the monthly figure.
Seeing the full cost helps you borrow with your eyes open.
Loans this covers
- Car loans, personal loans and financing.
- Comparing offers with different rates or terms.
- Understanding how extra repayments cut total interest.
- For home loans use the mortgage calculator; for savings growth, the compound interest calculator.
Private estimates
Calculations run in your browser. Figures are estimates — confirm details with your lender.