Loan Calculator
Work out monthly payments, total interest and payoff time for any loan amount, interest rate and term.
About the Loan Calculator
This loan calculator gives you the three numbers that matter before borrowing: your monthly payment, the total interest you will pay over the life of the loan, and the total amount repaid. Enter the loan amount, the annual interest rate and the term in years — the results update live, in plain numbers that work for any currency.
It uses the standard amortization formula for fixed-rate loans: payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the principal, r the monthly interest rate and n the number of monthly payments. This is the same reducing-balance method used by banks worldwide for personal loans, car loans and mortgages.
Use it to compare offers and terms before committing: a 20,000 loan at 7% costs about 396 a month over 5 years, but shortening to 3 years raises the payment to 618 while cutting total interest almost in half. If you are borrowing in India and want rupee formatting with a principal-versus-interest chart, try our dedicated EMI calculator.
How to Use the Loan Calculator
- 1Enter the loan amount you plan to borrow.
- 2Enter the annual interest rate offered by the lender.
- 3Set the loan term in years.
- 4Compare the monthly payment, total interest and total amount paid.
Frequently Asked Questions
How is a monthly loan payment calculated?
Fixed-rate loans use the amortization formula: payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the amount borrowed, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the total months. Each payment covers that month's interest first, with the remainder reducing the principal.
How can I pay less interest on a loan?
Three levers work: borrow less, secure a lower rate (shop lenders, improve your credit score, offer collateral) or choose a shorter term. Term is the most underrated — halving the term of a 5-year loan raises the monthly payment far less than it cuts lifetime interest. Extra principal payments also shorten the payoff.
What is APR and how is it different from the interest rate?
The interest rate is the cost of borrowing the principal; APR (Annual Percentage Rate) adds mandatory fees like origination or processing charges, expressed as a yearly rate. Two loans with the same interest rate can have different APRs, so APR is the better number for comparing offers side by side.
Should I choose a shorter or longer loan term?
A shorter term means higher monthly payments but much less total interest; a longer term eases monthly cash flow at a higher lifetime cost. A good rule: pick the shortest term whose payment fits comfortably in your budget — most advisers suggest keeping all debt payments under about 36–40% of income.
Does this calculator work for car loans and personal loans?
Yes. Any fixed-rate, fully amortizing loan — car, personal, student, home — follows the same formula, so the results apply directly. It does not model interest-only periods, balloon payments or variable rates. Currency is not assumed; the outputs are plain numbers valid for dollars, rupees, euros or any other unit.