Loan Calculator

Enter the amount, annual rate, term, and payment frequency. See the fixed payment, total interest, and the sum of payments. An estimate, not a lender quote.

Smart Tips

• The payment stays the same for the whole term. Early payments cover more interest than later ones, but this page does not list each payment.

• Total interest depends on the loan amount, the annual rate, the term, and how many payments you make per year.

• A shorter term usually means a higher payment and less total interest.

• Extra principal payments are not included. The figures assume you pay exactly the calculated amount each period.

The Formula

P = L[c(1 + c)^n]/[(1 + c)^n - 1]

P = Payment
Fixed amount each period

L = Loan Amount
Total amount borrowed

c = Periodic rate
(Annual % ÷ 100) ÷ payments per year

n = Number of payments
Years × payments per year

The rate is a nominal annual rate split evenly across the periods you select. It is not APR and it does not include fees. Total interest is the payment times the number of payments, minus the loan amount. Payments are not rounded to the cent before that multiplication.

Key Insights

Interest Decreases

As you pay down the principal, less interest accumulates each period.

Principal Increases

More of each payment goes toward the loan balance over time.

Rate Impact

Lower interest rates significantly reduce total loan cost.

Term Length

Shorter terms mean higher payments but lower total interest.

Frequently Asked Questions

Enter the loan amount, the annual interest rate, the term in years, and how often you pay. The payment is the standard fixed annuity. The periodic rate is the annual percent divided by 100, then divided by the number of payments per year. The number of payments is years times that frequency. Payment equals loan times c(1+c)^n divided by ((1+c)^n − 1). Total interest is that payment times the number of payments, minus the loan amount. The result is an estimate, not a lender quote, and it does not include fees.

The interest rate is the percentage charged on the principal, such as 6% per year. APR (annual percentage rate) includes that rate plus certain fees spread over the loan term, so it is usually higher than the stated rate. This calculator uses the interest rate you enter. It does not turn an APR into a payment.

A shorter term or a lower annual rate reduces total interest on this calculator, and it raises the payment when the term is shorter. Extra principal payments are not modeled. The figures assume you pay the calculated amount on every period and nothing more.

It fits a fixed-rate installment loan repaid in equal payments: personal, auto, student, or home equity, at the frequency you select. It does not apply to interest-only loans, credit cards, or variable-rate loans. Enter the amount you are borrowing, the annual rate, the term in years, and the payment frequency.

It is an estimate from the standard fixed-rate annuity formula. A rate of zero or below is rejected. A lender quote can differ because of fees, APR, rounding each payment to the cent, or other rules. Compare scenarios here, then use the lender’s loan estimate for the offered payment.

The payment uses the fixed-rate annuity formula in the formula section on this page. No outside rate feed is used, and fees are not added. For the payment and APR on an offer, use the lender’s loan estimate. Source: CFPB explanation of interest rate vs APR: https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-my-interest-rate-and-apr-en-726/.

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Monthly payment

Enter values to calculate

Total Interest

Total Payments

Note:Loan calculations are estimates based on standard formulas. Actual loan terms may vary based on credit history. Always consult with financial institutions for official loan quotes.