Loan Calculator
Estimate the monthly payment for a fixed-rate loan, plus the total you will repay and how much of that is interest. Works for car loans, personal loans, student loans and mortgages without extra fees.
Monthly payment M = P × r(1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r the annual rate ÷ 12 and n the number of monthly payments. At 0% interest, M = P ÷ n.
- Monthly payment
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- Total payment
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- Total interest
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- Number of payments
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How to Use the Loan Calculator
- Enter the loan amount you plan to borrow.
- Enter the annual interest rate, for example 7.5 for 7.5%.
- Enter the loan term and choose years or months.
- Read the monthly payment, total payment and total interest.
- Scroll the year-by-year schedule to see how much principal and interest you pay each year and the balance left.
Examples
Five-year car loan
- Input
- Loan 25,000 · Rate 7.5% · 5 years
- Output
- Monthly payment: 500.95 Total payment: 30,056.92 Total interest: 5,056.92
Interest-free loan
- Input
- Loan 12,000 · Rate 0% · 24 months
- Output
- Monthly payment: 500.00 Total payment: 12,000.00 Total interest: 0.00
About the Loan Calculator
Most personal, car and fixed-rate home loans are amortizing: you pay the same amount every month, and each payment covers that month’s interest first, with the rest reducing the balance. Early payments are mostly interest; later payments are mostly principal. The yearly schedule shows this shift.
The monthly payment uses the standard formula M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the annual rate divided by 12 and n is the number of monthly payments. When the rate is 0%, the payment is simply P ÷ n. Total payment is M × n, and total interest is the total payment minus the loan amount.
This is an estimate for a standard fixed-rate loan. It does not include origination fees, insurance, property taxes, balloon payments, variable rates or early repayment, and lenders may round each payment to the cent, so the actual figures can differ slightly. It is not a quote or an offer from any lender. The calculation runs in your browser with JavaScript, and this tool does not send what you enter to a Usevanta server.
Frequently Asked Questions
How is the monthly loan payment calculated?
With the amortization formula M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount borrowed, r is the monthly rate (annual rate ÷ 12) and n is the number of payments. For 25,000 at 7.5% over 60 months, that is 500.95 a month.
Is this the same as the APR a lender quotes?
Not necessarily. APR includes some fees as well as interest. This calculator uses the interest rate you enter and does not add any fees, so a lender’s payment may be higher.
Why is so much of the early payment interest?
Interest is charged on the remaining balance, which is largest at the start. As the balance falls, the interest part of each payment shrinks and more goes toward the principal.
Can I use it for a mortgage?
Yes, for the principal and interest part of a fixed-rate mortgage. Property taxes, home insurance and mortgage insurance are usually added to the monthly bill and are not included here.
Can I enter a term like 2.5 years?
Yes, as long as it comes to a whole number of monthly payments. 2.5 years is 30 months; 2.3 years is not a whole number of months, so you will be asked to adjust it.
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