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Loan Calculator

Work out the monthly payment and total interest on a fixed-rate loan.

How it works

The monthly payment is P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the monthly rate (annual rate ÷ 12) and n is the number of monthly payments. Total interest is the total paid minus the amount borrowed.

Worked example

Borrow $10,000 at 6% a year for 3 years. The monthly payment is about $304.22. Over 36 payments you repay about $10,952, so the interest cost is about $952. Stretching the same loan to 5 years lowers the payment but raises the interest.

Tips

• Compare loans by total interest, not just the monthly payment.
• Extra payments toward the principal shorten the loan and cut interest.
• Ask the lender about fees and the APR, because they change the real cost.

Frequently asked questions

Is this the same as my lender quote?

It is a close estimate. Fees, insurance and rounding rules vary, so check your loan documents.

What happens if I lower the term?

Payments rise, but you pay less interest overall.

What is APR?

The annual percentage rate includes the interest rate plus certain fees, so it shows the full yearly cost of borrowing.

Does this work for car or personal loans?

Yes, any fixed-rate loan with equal monthly payments.

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