Loan Calculator
Calculate monthly payments and total interest
What is Loan Calculator?
Loan Calculator is a free online tool that calculates monthly payments, total interest, and complete amortization schedules for loans. Enter the loan amount, annual interest rate, and loan term to instantly see your monthly payment and the total cost of the loan. The tool breaks down each payment into principal and interest portions, showing how the balance decreases over time. It is useful for mortgages, car loans, personal loans, and student loans. All calculations happen in your browser with no financial data sent to any server, ensuring complete privacy for your financial planning.
How to Use
- Enter the loan principal, annual interest rate (%), and loan term (months).
- Monthly payment, total interest, and total payment are calculated automatically.
Tips & Best Practices
- Compare different loan terms to see how longer terms reduce monthly payments but increase total interest.
- Use the amortization schedule to see how much of each payment goes to principal vs interest.
- Try different interest rates to understand how even a 0.5% difference affects total cost.
- Factor in additional payments to see how they can shorten your loan term and save on interest.
- Use this for mortgage pre-qualification to understand what monthly payment you can afford.
Use Cases
Mortgage Planning
Calculate monthly payments and total cost for home loans at various rates and terms.
Auto Loans
Compare financing options for car purchases with different rates and loan lengths.
Personal Loans
Evaluate personal loan offers by comparing monthly payments and total interest.
Financial Education
Understand how interest rates, loan terms, and payment amounts relate to each other.
FAQ
How is the monthly payment calculated?
It uses the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is principal, r is monthly rate, n is number of months.
Is the interest rate annual?
Yes, enter the annual interest rate (%) and it is automatically converted to a monthly rate for calculation.
What is the equal payment (amortization) method?
Equal payment amortization means paying the same total amount (principal + interest) each month. The interest portion is higher initially and decreases over time.
Is my financial information sent to any server?
No, all loan calculations are performed locally in your browser and no financial information is transmitted externally.
How can I reduce the total interest paid?
You can reduce total interest by shortening the loan term, securing a lower interest rate, or making extra payments (prepayments) when possible.
Are the results the same as an actual loan?
This calculator provides estimates based on standard formulas. Actual loans may include additional fees, insurance, and variable rates, so consult your financial institution for exact figures.
Is my financial data collected?
No, all calculations happen in your browser. No financial data is sent to any server.
What is an amortization schedule?
An amortization schedule shows each monthly payment broken down into principal and interest, with the remaining balance.
How does loan term affect total cost?
Longer terms mean lower monthly payments but more total interest paid. Shorter terms have higher payments but less total interest.
What is the difference between APR and interest rate?
APR includes the interest rate plus fees and closing costs. This calculator uses the nominal annual interest rate.
Can I calculate with extra payments?
The basic calculator shows standard amortization. To see the effect of extra payments, compare different loan amounts.
Does it handle variable rates?
This calculator uses fixed interest rates. For variable rate loans, recalculate periodically with the current rate.
What loan types does this work for?
It works for any fixed-rate, fully amortizing loan including mortgages, auto loans, personal loans, and student loans.