Loan Payment Calculator
Calculate your monthly loan payment, total interest, and total amount paid over the life of the loan.
Results
Monthly Payment $0.00
Total Interest $0.00
Total Amount Paid $0.00
How it works
This calculator uses the standard loan amortization formula to determine your monthly payment:
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
- M = Monthly payment
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate / 12)
- n = Total number of payments (years × 12)
Example Calculation
If you borrow $10,000 at 5% annual interest for 5 years:
- Monthly Payment: $188.71
- Total Interest: $1,322.74
- Total Amount Paid: $11,322.74
FAQ
- How is the monthly payment calculated?
- The monthly payment is calculated using the standard amortization formula. It takes into account your loan amount, annual interest rate, and loan term to determine a fixed monthly payment that will pay off the loan by the end of the term.
- What is the difference between interest rate and APR?
- The interest rate is the cost of borrowing the principal amount. APR (Annual Percentage Rate) includes the interest rate plus other fees and costs. This calculator uses the interest rate only. For a complete cost comparison, check your lender's APR.
- Can I pay off my loan early?
- Most loans allow early repayment, but some may have prepayment penalties. Paying extra each month or making lump-sum payments can significantly reduce the total interest you pay. Check your loan agreement for specific terms.