💳 Loan Calculator
Calculate monthly payments, total interest, and see the full amortization schedule.
About This Loan Calculator
This comprehensive loan calculator helps you determine monthly payments, total interest costs, and provides a complete amortization schedule for any type of loan. Whether you're considering a personal loan, auto loan, or business financing, understanding the true cost of borrowing is essential for making informed financial decisions.
How to Use This Calculator
- Loan Amount: Enter the principal amount you wish to borrow. This is the base amount before any interest or fees.
- Annual Interest Rate: Input the APR (Annual Percentage Rate) offered by your lender. Rates vary based on credit score, loan type, and market conditions.
- Loan Term: Specify the length of your loan. Common terms are 12-84 months for auto loans, 12-60 months for personal loans, and up to 360 months (30 years) for mortgages.
- Term Unit: Select whether your term is in years or months for flexibility.
The Loan Payment Formula (PMT)
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where: M = Monthly Payment, P = Principal, r = monthly interest rate, n = total number of payments
Understanding Your Results
Monthly Payment: The fixed amount you'll pay each month throughout the loan term.
Total Interest: The cumulative interest you'll pay over the life of the loan. This represents the true cost of borrowing.
Amortization Schedule: A year-by-year breakdown showing how each payment is split between principal and interest. Early payments are mostly interest; later payments are mostly principal.
Use this calculator to compare different loan offers, understand the impact of interest rates, and determine how much loan you can comfortably afford based on your budget.