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Loan Calculator - Calculate Monthly Payments & Interest

Free loan calculator to estimate monthly payments, total interest, and amortization schedule. Works for mortgages, auto loans, personal loans, and more.

9 min read

iAbout This Calculator

Whether you're planning to buy a home, finance a car, or consolidate debt, understanding your loan payments is essential for sound financial planning. Our free loan calculator helps you estimate monthly payments, total interest costs, and view a complete amortization schedule before you commit to any loan. By entering just three numbers—loan amount, interest rate, and term—you can instantly see how much you'll pay each month and over the life of the loan. This tool works for mortgages, auto loans, personal loans, student loans, and any fixed-rate installment loan. Make informed borrowing decisions and compare different loan scenarios to find the option that fits your budget.

?How to Use

  1. 1

    Enter the total loan amount (principal) you plan to borrow. This is the purchase price minus any down payment you've made.

  2. 2

    Input the annual interest rate offered by your lender. You can find this in your loan quote or pre-approval letter. Enter as a percentage (e.g., 6.5 for 6.5%).

  3. 3

    Specify the loan term in months. For example, enter 360 for a 30-year mortgage, 60 for a 5-year auto loan, or 36 for a 3-year personal loan.

  4. 4

    Click Calculate to see your estimated monthly payment, total amount you'll pay, and total interest charges.

  5. 5

    Review the amortization schedule below to see how each payment breaks down between principal and interest over time.

fFormula

M = P \times \frac{r(1+r)^n}{(1+r)^n - 1}

The monthly payment is calculated using the standard amortization formula. P is the principal (loan amount), r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (term in months).

M
Monthly payment amount
P
Principal (original loan amount)
r
Monthly interest rate (annual rate / 12 / 100)
n
Total number of monthly payments

Examples

30-Year Mortgage

Inputs: principal: 300000, rate: 6.5, term: 360
$1,896.20/month

A $300,000 mortgage at 6.5% for 30 years requires monthly payments of $1,896.20. Total paid: $682,632. Total interest: $382,632.

5-Year Auto Loan

Inputs: principal: 35000, rate: 7.9, term: 60
$707.88/month

Financing $35,000 for a car at 7.9% APR over 5 years costs $707.88 monthly. Total interest paid: $7,472.80.

Personal Loan

Inputs: principal: 15000, rate: 10.5, term: 36
$487.79/month

A $15,000 personal loan at 10.5% for 3 years has monthly payments of $487.79. Total interest: $2,560.44.

Student Loan Refinance

Inputs: principal: 50000, rate: 5.25, term: 120
$535.89/month

Refinancing $50,000 in student loans at 5.25% over 10 years results in $535.89 monthly payments. Total interest: $14,306.80.

Use Cases

Home Buying

Calculate mortgage payments to determine how much house you can afford. Compare 15-year vs 30-year terms to see the trade-off between monthly payment and total interest.

Auto Financing

Estimate car loan payments before visiting the dealership. Know your budget so you can negotiate confidently and avoid overextending.

Debt Consolidation

Compare consolidation loan payments against your current debts to see if refinancing makes financial sense and how much you could save.

Loan Comparison

Run multiple scenarios with different rates and terms to compare offers from various lenders and find the most affordable option.

Budget Planning

Before applying for any loan, calculate the monthly payment to ensure it fits within your budget alongside other expenses.

Frequently Asked Questions

How is monthly loan payment calculated?
Monthly payments are calculated using the amortization formula: M = P Ă— [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly interest rate, and n is number of payments. This formula ensures equal payments throughout the loan while gradually shifting from interest-heavy to principal-heavy portions.
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus other fees and costs, giving a more complete picture of the loan's true cost. For accurate comparisons between lenders, compare APRs.
Should I choose a shorter or longer loan term?
Shorter terms mean higher monthly payments but less total interest. Longer terms lower monthly payments but cost more overall. Choose based on your monthly budget and long-term financial goals. A 15-year mortgage can save over $100,000 in interest compared to 30 years on a $300,000 loan.
How does making extra payments affect my loan?
Extra payments go directly toward principal, reducing the balance faster and the total interest paid. Even small additional amounts can significantly shorten your loan term. Specify that extra payments should apply to principal, not prepay future payments.
What credit score do I need for the best loan rates?
Generally, scores above 740 qualify for the best rates. Scores between 670-739 get good rates, while 580-669 may still qualify but at higher rates. Below 580, loan approval is difficult and rates are much higher. Each lender has different criteria.

Conclusion

Understanding your loan payments before borrowing is crucial for financial success. Use this loan calculator to explore different scenarios, compare offers, and ensure any loan you take fits comfortably within your budget. Remember that the lowest monthly payment isn't always the best deal—consider total interest paid and your long-term financial goals. For major purchases like homes or cars, taking time to calculate and compare can save thousands of dollars.