Loan Calculator
Easily calculate your monthly loan payments, total interest, and overall cost. Perfect for personal loans, car loans, and mortgages.
Why Use Our Loan Calculator?
Instant Results
Get immediate calculations of your monthly payment, total interest, and total cost without any delays.
100% Accurate
Uses the standard amortization formula trusted by financial institutions worldwide for precise calculations.
All Loan Types
Works for mortgages, auto loans, personal loans, student loans, and any fixed-rate loan.
Free Forever
No registration, no hidden fees, no limits. Use our calculator as many times as you need, completely free.
Understanding Loan Calculations
How is it calculated?
This calculator uses the standard amortization formula to determine your monthly payments. It takes into account the principal loan amount, the annual interest rate, and the loan term.
The Amortization Formula:
M = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ - 1]- M = Monthly Payment
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
Key Terms Explained
Principal
The amount of money you borrow from the lender. This is the base amount on which interest is calculated.
Interest Rate
The cost of borrowing money, expressed as an annual percentage. Lower rates mean less total interest paid.
Loan Term
The length of time you have to repay the loan. Longer terms mean lower monthly payments but more total interest.
Amortization
The process of paying off a loan over time through regular payments that cover both principal and interest.
How Your Payments Change Over Time
With amortized loans, your monthly payment stays the same, but the distribution between interest and principal changes:
- Early Payments: Most of your payment goes toward interest, with a small amount reducing the principal
- Mid-Term Payments: The split becomes more balanced between interest and principal
- Late Payments: Most of your payment goes toward principal, with minimal interest
Types of Loans You Can Calculate
🏠 Mortgage Loans
Calculate monthly payments for home purchases. Typical terms: 15, 20, or 30 years.
Average rate: 6-7%
🚗 Auto Loans
Determine car loan payments for new or used vehicles. Typical terms: 3-7 years.
Average rate: 5-9%
💳 Personal Loans
Calculate payments for debt consolidation, home improvements, or major purchases. Terms: 2-7 years.
Average rate: 8-15%
🎓 Student Loans
Estimate education loan repayments. Federal and private loans. Terms: 10-25 years.
Average rate: 4-12%
💼 Business Loans
Calculate financing for business expansion, equipment, or working capital. Terms vary widely.
Average rate: 6-13%
🏡 Home Equity Loans
Borrow against your home equity for renovations or major expenses. Terms: 5-30 years.
Average rate: 7-10%
💡 Smart Borrowing Tips
1. Shop Around for Rates
Even a 0.5% difference in interest rate can save thousands over the life of a loan. Compare offers from at least 3-5 lenders before deciding.
2. Make a Larger Down Payment
A bigger down payment reduces your principal, lowering monthly payments and total interest. Aim for 20% on mortgages to avoid PMI.
3. Consider Shorter Loan Terms
While monthly payments are higher, shorter terms (15 vs 30 years) can save tens of thousands in interest and build equity faster.
4. Make Extra Payments
Even small additional payments toward principal can significantly reduce total interest and shorten your loan term by years.
5. Improve Your Credit Score
Higher credit scores qualify for better interest rates. Pay bills on time, reduce debt, and check your credit report for errors.
6. Understand All Costs
Look beyond monthly payments. Factor in origination fees, closing costs, insurance, and taxes for the true cost of borrowing.
Loan Term Comparison: 15-Year vs 30-Year Mortgage
Example: $250,000 loan at 6% interest rate
| Loan Term | Monthly Payment | Total Paid | Total Interest | Interest Saved |
|---|---|---|---|---|
| 15 Years | $2,109.64 | $379,735 | $129,735 | $159,860 |
| 30 Years | $1,498.88 | $539,595 | $289,595 | — |
Key Insight: The 15-year loan saves you $159,860 in interest but requires $610.76 more per month. Choose based on your budget and financial goals.