Loan Calculator - Calculate Monthly Payments & Total Interest

Calculate your monthly loan payments, total interest costs, and amortization schedule. Perfect for personal, car, or home loans with accurate debt breakdown.

Financial Insight

This calculator is for estimation purposes only. Actual rates and payments may vary based on lender policies and credit scores.

Enter your loan details to instantly see your monthly payment and total interest cost.

Fill in your loan amount and interest rate to see the breakdown.

Loan Calculator - Calculate Monthly Payments & Total Interest

Calculate your monthly loan payments, total interest costs, and amortization schedule. Perfect for personal, car, or home loans with accurate debt breakdown.

Understanding Your Loan Payment

Most consumer loans are amortized, meaning you pay a fixed amount each month. Initially, a larger portion of your payment goes toward interest. Over time, as the principal balance decreases, more of your payment goes toward paying off the actual debt.

Financial Planning

Understanding your monthly commitment is the first step toward smart debt management and financial stability.

The Standard Amortization Formula

M = P [ i(1 + i)ⁿ ] / [ (1 + i)ⁿ - 1 ]

Here, M is the monthly payment, P is the principal amount, i is the monthly interest rate, and n is the total number of payments (months).

Practical Examples

Personal Loan Example

A $10,000 personal loan at 7% for 3 years results in a monthly payment of $308.77 and total interest of $1,115.72.

Standard Auto Loan

Borrowing $30,000 at 5% for 60 months (5 years) leads to a monthly payment of $566.14.

Key Terms to Know

  • Principal: The actual amount of money you borrow before interest.
  • Interest Rate: The cost of borrowing, expressed as an annual percentage.
  • Amortization: The process of paying off debt in regular installments over time.

Loan FAQ

How Loans and Interest Work - Clear Explanation