Loan Calculator

Loan Calculator – Calculate Monthly Payments & Total Interest

Plan your financial future with our free Loan Calculator. Whether you're considering a mortgage, auto loan, or personal loan, our tool helps you quickly estimate monthly payments, total interest costs, and the overall cost of the loan. Make informed borrowing decisions with instant calculations.

Instant Calculation

Get real-time results for monthly payments and total costs as you input your loan details.

Detailed Breakdown

See exactly how much of your payment goes towards principal versus interest.

Cost Analysis

Understand the true cost of borrowing by visualizing the total interest paid over the life of the loan.

How to Use the Loan Calculator

Our loan calculator is designed to be simple and intuitive. Follow these steps to get your loan estimate:

Loan Amount: Enter the total amount of money you plan to borrow (the principal).
Interest Rate: Input the annual interest rate (APR) offered by the lender.
Loan Term: Specify the duration of the loan in years (e.g., 30 for a standard mortgage, 5 for an auto loan).
Calculate: Click the button to see your monthly payment, total interest, and total cost immediately.

Understanding Loan Amortization

When you take out a loan, your monthly payment goes towards two things: paying back the money you borrowed (principal) and paying the lender for the privilege of borrowing (interest).

Principal: This is the original sum of money borrowed. As you make payments, the principal balance decreases.
Interest: This is the cost of borrowing money, calculated as a percentage of the remaining principal.

In the early years of a long-term loan like a mortgage, a large portion of your payment goes towards interest. As the loan matures, more of your payment goes towards reducing the principal.

Types of Loans You Can Calculate

Mortgages

Calculate payments for home loans. Common terms are 15 or 30 years.

Auto Loans

Estimate monthly costs for new or used cars. Typical terms range from 3 to 7 years.

Personal Loans

Plan for debt consolidation, home improvements, or major purchases.

Student Loans

Understand repayment schedules for education financing.

Frequently Asked Questions

How is the monthly payment calculated?

The calculator uses the standard amortization formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ], where M is the monthly payment, P is the principal, i is the monthly interest rate, and n is the number of payments.

Does this include taxes and insurance?

No, this calculator estimates the principal and interest portion of your payment only. For mortgages, you should also account for property taxes, homeowner's insurance, and potentially PMI (Private Mortgage Insurance).

What is a good interest rate?

Interest rates vary by loan type, economic conditions, and your credit score. Generally, secured loans like mortgages have lower rates than unsecured personal loans. It's best to check current market rates and shop around with multiple lenders.

Can I pay off my loan early?

Most loans allow early repayment, which can save you significant money on interest. However, some lenders charge a prepayment penalty. Always check your loan agreement terms before making extra payments.