Loan Calculator
Calculate your monthly payment, total interest and see a full amortization schedule for any loan.
How to Use the Loan Calculator
Enter your loan amount, the annual interest rate quoted by your lender, and the loan term (in months or years). Click Calculate Loan and the calculator instantly shows your monthly payment, the total amount you'll repay, and the total interest charged over the life of the loan. The amortization table below the results breaks every single payment into its principal and interest components so you can see exactly where your money goes each month.
The calculator uses the standard PMT formula — the same formula used by banks, credit unions, and financial institutions worldwide — so the results are reliable for any type of instalment loan including personal loans, auto loans, student loans, and small business loans.
Understanding Your Loan Results
Monthly Payment
This is the fixed amount you'll pay each month for the life of the loan. It stays the same regardless of how the balance changes — that predictability is one of the core features of a standard amortising loan.
Total Interest Paid
This figure often surprises borrowers. On a $15,000 loan at 6.5% over 60 months, for example, you'll pay around $2,600 in interest on top of the principal. The longer the loan term, the more total interest you pay — even if the monthly payment feels more affordable. Use this figure to compare different loan offers.
Interest Percentage
This shows interest as a percentage of your total repayment. It's a quick way to gauge how expensive a loan is. A ratio above 20% generally indicates a high-cost loan worth shopping around for alternatives.
What is an Amortization Schedule?
An amortization schedule is a complete table of every loan payment, showing how each payment is split between principal and interest. In the early months of a loan, the majority of each payment goes to interest because the outstanding balance is high. As you pay down the principal, the interest portion shrinks and more of each payment goes toward reducing the balance. This pattern — called front-loaded interest — is standard for all instalment loans.
Reading your amortization schedule is useful if you are considering making extra payments to reduce your loan early. Any amount paid above the minimum goes directly to principal, which reduces the interest charged in future months and shortens the loan term.
Tips for Getting a Better Loan
- Check your credit score first. Lenders offer lower rates to borrowers with higher scores. Even a 1% rate reduction on a $20,000 loan over 5 years saves you hundreds of dollars.
- Compare APR, not just interest rate. The Annual Percentage Rate includes fees and gives a truer picture of loan cost.
- Shorter terms cost less overall. A 36-month loan charges significantly less total interest than a 60-month loan for the same amount, even though the monthly payment is higher.
- Make extra payments when possible. Even one extra payment per year can cut months off a loan and save meaningful interest.
- Avoid pre-payment penalties. Some loans charge a fee for paying off early — always check the loan agreement.
Loan Calculator Formula
The monthly payment M is calculated as: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal (loan amount), r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. When the interest rate is zero, the payment is simply the principal divided by the number of months.