Loan Calculator – Estimate Monthly Payment & Interest
Use our Loan Calculator to estimate your monthly loan payment, total interest, and total repayment based on the amount you borrow, annual interest rate, and repayment term.
Enter your loan amount, choose a repayment period in months or years, and add the annual interest rate to instantly see how much you may pay each month. You can also review a repayment breakdown, compare different loan terms, check the remaining balance over time, and view an amortization schedule.
The calculator can be useful for personal loans, installment loans, financing plans, and other fixed-rate amortizing loans.
The results are estimates based on the values you enter. Actual payments, APR, lender fees, loan terms, and repayment conditions may differ.
What Is a Loan Calculator?
A loan calculator estimates how much a loan may cost based on three main values:
Loan Amount
Interest Rate
Loan Term
It calculates your estimated:
- Monthly loan payment
- Total interest
- Total repayment
- Number of monthly payments
- Principal and interest breakdown
- Remaining loan balance
- Amortization schedule
For example, if you borrow:
$20,000
at:
8% annual interest
for:
5 years
the calculator determines the monthly payment required to repay the loan over:
60 monthly payments
How to Use the Loan Calculator
Using the calculator takes only a few steps.
1. Enter the Loan Amount
Enter the amount you plan to borrow.
For example:
$20,000
This amount is also known as the loan principal.
2. Enter the Annual Interest Rate
Enter the annual interest rate offered for the loan.
Example:
8%
The calculator also supports decimal rates such as:
6.5%
8.25%
11.99%
or other percentages.
3. Choose the Loan Term
Enter how long you plan to repay the loan.
You can use:
Years
or:
Months
For example:
5 years
is equal to:
60 months
The calculator automatically handles the conversion.
4. Review the Monthly Payment
The main result displays your:
Estimated Monthly Payment
Below the main payment, you can review:
Total Interest
Total Repayment
Number of Payments
and:
Loan Fee
if one is entered.
Loan Payment Formula
A standard fixed-rate amortizing loan uses the formula:
M = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
Where:
M = Monthly paymentP = Loan principalr = Monthly interest raten = Number of monthly payments
The monthly interest rate is calculated as:
Annual Interest Rate ÷ 12
For example, if the annual interest rate is:
8%
then the approximate monthly rate is:
8% ÷ 12 = 0.6667%
For a five-year loan:
5 × 12 = 60 payments
The calculator performs these calculations automatically.
Loan Payment Example
Suppose you borrow:
$20,000
at:
8% annual interest
for:
5 years
The loan term equals:
60 months
The calculator uses the loan-payment formula to determine the estimated monthly payment.
It then calculates:
Total Repayment = Monthly Payment × 60
and:
Total Interest = Total Repayment − $20,000
This lets you see both your monthly obligation and the total cost of borrowing.
What Is a Monthly Loan Payment?
A monthly loan payment is the scheduled amount paid each month until the loan is repaid.
For a typical fixed-rate amortizing loan, each payment contains:
Principal
The portion that reduces the outstanding loan balance.
Interest
The cost charged for borrowing the money.
At the beginning of many amortizing loans, a larger portion of each payment goes toward interest.
As the balance decreases, more of the payment generally goes toward principal.
How to Calculate Total Interest on a Loan
Total interest is the amount you pay above the original loan principal.
Use:
Total Interest = Total Repayment − Loan Amount
For example:
Loan amount:
$15,000
Total repayment:
$18,500
Total interest:
$3,500
This value helps you understand the total borrowing cost rather than focusing only on the monthly payment.
What Is Total Loan Repayment?
Total repayment is the total amount of principal and interest paid across all scheduled payments.
Use:
Total Repayment = Monthly Payment × Number of Payments
For example:
Monthly payment:
$350
Number of payments:
60
Total repayment:
$21,000
If the original loan was:
$18,000
then the difference represents the estimated interest paid.
How Interest Rate Affects Your Loan
The interest rate can significantly affect both your monthly payment and total loan cost.
For the same loan amount and term:
Lower Interest Rate
Usually means:
- Lower monthly payment
- Less total interest
- Lower total repayment
Higher Interest Rate
Usually means:
- Higher monthly payment
- More total interest
- Higher total repayment
This is why comparing loan rates can be important when evaluating financing options.
How Loan Term Affects Monthly Payment
The repayment term also changes the cost of a loan.
A shorter loan term generally results in:
Higher monthly payments
but:
Less total interest
A longer term generally results in:
Lower monthly payments
but may result in:
More total interest
because the balance remains outstanding for a longer period.
3-Year vs. 5-Year vs. 7-Year Loan
The calculator includes a Loan Term Comparison so you can compare different repayment periods using the same loan amount and interest rate.
For example:
| Loan Term | Monthly Payment | Total Interest |
|---|---|---|
| 3 Years | Higher | Lower |
| 5 Years | Moderate | Moderate |
| 7 Years | Lower | Higher |
The exact values depend on the amount borrowed and interest rate entered.
This comparison helps illustrate the tradeoff between monthly affordability and total borrowing cost.
Loan Calculator in Months
Some loans are quoted in months instead of years.
Common examples include:
12 months
24 months
36 months
48 months
60 months
72 months
84 months
The calculator lets you switch between months and years without manually converting the term.
For example:
36 months = 3 years
60 months = 5 years
84 months = 7 years
Loan Calculator With Interest
A loan calculator with interest helps determine how the annual rate affects the amount you repay.
For example:
Loan amount:
$10,000
Interest rate:
10%
Loan term:
3 years
The calculator estimates:
- Monthly payment
- Total interest
- Total repayment
- Remaining balance over time
This makes it easier to understand the true cost of the loan.
Principal vs. Interest Breakdown
The repayment breakdown separates:
Principal
from:
Interest
For example:
Loan principal:
$20,000
Interest over the full term:
$4,000
Total repayment:
$24,000
Principal represents:
83.33%
of the total repayment.
Interest represents:
16.67%
The calculator displays this relationship visually.
What Is Loan Amortization?
Loan amortization is the process of gradually reducing a loan balance through scheduled payments.
Each payment normally includes:
Interest
and:
Principal
Interest is generally calculated from the remaining balance.
As the principal decreases, the interest charged in later periods usually becomes smaller.
Loan Amortization Schedule
The calculator includes an amortization schedule that helps you understand how repayment progresses.
For loans longer than 12 months, the tool provides a:
Year-by-Year Repayment Schedule
It shows:
Principal Paid
Interest Paid
Remaining Balance
For shorter loans of 12 months or less, the calculator provides a:
Month-by-Month Schedule
This keeps the information useful without creating an unnecessarily long table.
Remaining Loan Balance
The remaining balance is the amount of principal that has not yet been repaid.
For example:
Original loan:
$20,000
After several payments, the remaining principal may fall to:
$15,000
then:
$10,000
and eventually:
$0
The calculator's remaining-balance chart provides a visual estimate of this repayment process.
0% Interest Loan Calculator
A 0% interest loan is calculated differently because there is no borrowing interest.
The formula becomes:
Monthly Payment = Loan Amount ÷ Number of Payments
For example:
Loan:
$12,000
Term:
24 months
Monthly payment:
$12,000 ÷ 24
= $500
Total interest:
$0
Total repayment:
$12,000
The calculator handles this automatically.
Personal Loan Calculator
This tool can also be used as a personal loan calculator.
Suppose you are considering:
$25,000
at:
9%
for:
5 years
You can enter those values to estimate:
- Monthly payment
- Total interest
- Total repayment
- Remaining balance
- Amortization
This can help when comparing different personal-loan offers.
Installment Loan Calculator
Many installment loans are repaid through equal scheduled payments.
If you know:
Loan Amount
Interest Rate
and:
Repayment Term
the calculator can estimate a standard fixed-rate installment payment.
Actual lender terms may differ, so always review the loan agreement before borrowing.
What Is a Loan Origination Fee?
Some lenders charge an origination or loan fee when issuing a loan.
For example:
Loan amount:
$20,000
Loan fee:
5%
Fee:
$1,000
If the fee is deducted from the loan proceeds:
Estimated Cash Received = $19,000
The calculator lets you enter an optional percentage-based fee to estimate this difference.
Loan Amount vs. Cash Received
When a lender deducts a fee before sending the loan proceeds, the amount borrowed and amount received can be different.
For example:
Loan principal:
$20,000
Origination fee:
$1,000
Cash received:
$19,000
However, repayment may still be based on the full:
$20,000
principal.
This is why the tool displays the estimated cash received separately.
Interest Rate vs. APR
An interest rate and an APR are not always identical.
Interest Rate
The percentage used to calculate interest on the outstanding loan balance.
APR
Annual percentage rate may include the interest rate plus certain borrowing costs or fees.
Because loan products differ, this calculator asks for the:
Annual Interest Rate
and does not automatically assume that the entered percentage represents APR.
How to Compare Two Loans
When comparing loans, do not look only at the monthly payment.
Consider:
Loan Amount
How much are you actually borrowing?
Interest Rate
What rate is being charged?
Monthly Payment
Can the payment fit your budget?
Loan Term
How long will repayment take?
Total Interest
How much will borrowing cost?
Total Repayment
How much will you pay overall?
Loan Fees
Will an upfront fee reduce the amount of cash you receive?
Comparing these factors gives you a more complete picture of each loan.
Why a Lower Monthly Payment Is Not Always Cheaper
A longer repayment term often reduces the monthly payment.
However, it may increase the total interest paid.
For example, extending a loan from:
5 years
to:
7 years
may make the monthly payment easier to manage, but the loan remains outstanding for an additional two years.
That can increase the overall borrowing cost.
The calculator's term comparison helps make this difference easier to see.
Does This Calculator Include Extra Payments?
No.
This calculator assumes regular scheduled payments throughout the selected term.
Making additional payments may reduce the balance faster and potentially reduce interest, but that requires a different payoff calculation.
A separate Loan Payoff Calculator is more appropriate for extra-payment scenarios.
Does the Loan Calculator Include Late Fees?
No.
The calculator does not include:
- Late-payment charges
- Penalties
- Collection fees
- Prepayment penalties
- Other lender-specific charges
It assumes the loan is repaid according to the entered schedule.
Does the Calculator Determine Whether I Qualify for a Loan?
No.
This calculator estimates repayment only.
It does not evaluate:
- Credit score
- Income
- Debt-to-income ratio
- Employment
- Collateral
- Lender approval requirements
Loan approval depends on the lender and specific product.
Can I Use Different Currencies?
Yes.
The same loan formula can be used with different currencies.
The calculator supports display options such as:
$
€
£
₹
₨
Changing the currency symbol does not change the calculation.
Common Loan Calculation Mistakes
Looking Only at the Monthly Payment
A smaller payment can result from a longer term, which may increase overall interest.
Confusing Interest Rate With APR
APR can include additional costs that are not reflected in the basic interest rate.
Ignoring Loan Fees
A loan fee can reduce the actual cash you receive.
Entering the Wrong Loan Term
For example:
5 years = 60 months
not 5 months.
Ignoring Total Interest
Knowing the monthly payment is useful, but the total interest tells you more about the full cost of borrowing.
Frequently Asked Questions
How do I calculate a monthly loan payment?
Enter the loan amount, annual interest rate, and repayment term. The calculator applies the standard fixed-rate loan formula to estimate the monthly payment.
What is the loan payment formula?
For a fixed-rate amortizing loan:
M = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
How do I calculate total loan interest?
Use:
Total Interest = Total Repayment − Loan Amount
How do I calculate total repayment?
Multiply the monthly payment by the number of scheduled payments.
Can I calculate a loan in months?
Yes.
Can I calculate a loan in years?
Yes.
Can I use a decimal interest rate?
Yes. Rates such as 7.5% or 9.99% are supported.
Does the calculator support 0% interest?
Yes.
Can I include a loan fee?
Yes. You can enter an optional origination or loan-fee percentage.
What is an amortization schedule?
It shows how payments are divided between principal and interest and how the remaining balance changes over time.
Does the calculator include extra payments?
No. It assumes the regular scheduled payment only.
Is the calculated payment guaranteed?
No. The result is an estimate based on your inputs. Actual lender calculations and terms may differ.
Calculate Your Loan Payment
Use the Loan Calculator to estimate how the amount borrowed, interest rate, and repayment term affect your loan.
Simply enter:
Loan Amount
Annual Interest Rate
and:
Loan Term
to calculate:
Estimated Monthly Payment
Total Interest
Total Repayment
Number of Payments
and:
Remaining Loan Balance
You can also compare different loan terms and review the amortization schedule to better understand how the loan is repaid over time.