Loan Payment Calculator
Enter the loan amount, the annual interest rate and the term to see the fixed monthly payment, the total interest and the full amount you will repay.
How to use it
Type the amount you plan to borrow, the yearly interest rate as a percentage, and the length of the loan. Switch the unit to months if your term is shorter than a year. Press Calculate to see the result.
The figures assume a standard amortizing loan with equal monthly payments and interest charged monthly. Fees, insurance and early repayment options are not included.
How it is calculated
The monthly rate r is the annual rate divided by 12 and by 100. With n monthly payments and a loan amount P, the payment is P x r / (1 - (1 + r)^-n). If the rate is exactly zero, the payment is simply P divided by n.
Total repaid is the payment times n, and total interest is the total repaid minus P. The calculator rounds only the displayed values, not the intermediate numbers.
Examples
A loan of 20,000 at 6% for 5 years has r = 0.005 and n = 60. The payment is about 386.66 per month, the total repaid is about 23,199.55 and the interest is about 3,199.55.
The same 20,000 over 10 years at 6% lowers the payment to about 222.04 per month, but the total interest rises to about 6,644.83.
FAQ
Why is my bank's figure slightly different?
Lenders may add fees, use a different day-count convention or round each payment. This tool gives the pure mathematical payment.
Does a longer term cost more?
Usually yes. A longer term lowers each payment but you pay interest for more months, so total interest rises.
Can I enter a 0% rate?
Yes. The payment is then just the loan amount divided by the number of months.
Does this work for car loans and personal loans?
It works for any fixed-rate loan with equal monthly payments. It does not model variable rates or interest-only periods.
See also
More tools: BMI Calculator.
Try also Age Calculator.
You may also find useful Days Between Dates.
Another free tool: Percentage Calculator.
Related calculator: Tip Calculator.