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Finance Calculators

Loan Calculator

Calculate monthly payment, total payment and total interest for a loan.

Free browser toolRuns in your browserNo sign-up

Monthly payment

$500.95

$30,056.92
Total payment
$5,056.92
Total interest
60
Payments
Principal vs total interest83.2% / 16.8%
Principal $25,000.00Interest $5,056.92

First payment breakdown

Principal repaid

$344.70

Interest charged

$156.25

Interest is usually highest at the beginning. As the balance falls, more of each payment goes toward principal.

Calculated with the standard amortizing formula over 60 monthly payments. When the interest rate is zero, the payment is simply the amount divided by the number of payments.

Loan payment formula explained

This calculator uses the reducing-balance method used for standard amortizing loans. Interest is charged on the outstanding balance, which decreases after every payment.

Payment = P x r x (1 + r)^n / ((1 + r)^n - 1)
P
Original loan principal
r
Monthly rate: annual rate / 12 / 100
n
Total monthly payments

Worked example

A $25,000 loan at 7.5% for 5 years has a monthly payment of about $500.95. Across 60 payments, total interest is about $5,057 and total repayment is about $30,057.

Tips for comparing loans

  • Compare total interest

    A low monthly payment can hide a costly long term. Compare total repayment too.

  • Check APR and fees

    The stated rate may exclude origination, service or early-settlement fees.

  • Test a shorter term

    Higher payments over fewer months can substantially reduce interest.

  • Verify prepayment rules

    Extra principal payments may save interest, provided the lender permits them without a penalty.

About the Loan Calculator

The Loan Calculator works out the fixed monthly payment for an amortizing loan using the loan amount, annual interest rate and term. It also shows the total you will repay and how much of that is interest.

Each payment covers the interest due for the period plus a portion of the principal, so early payments are mostly interest and later payments are mostly principal.

When the interest rate is zero, the payment is simply the loan amount divided by the number of payments. All calculations run in your browser and nothing is uploaded.

Key features

  • Monthly payment, total payment and total interest
  • Optional extra-payment savings scenario
  • Exportable monthly payoff schedule
  • Term in years or months
  • Handles zero-interest loans
  • Locale-aware currency formatting

How to use

  1. 1Enter the loan amount and choose a currency.
  2. 2Enter the annual interest rate and the loan term.
  3. 3Choose whether the term is in years or months.
  4. 4Read the monthly payment, total repayment and total interest.
  5. 5Optionally enter an extra monthly payment, then open or export the revised payoff schedule.

Examples

Five-year loan
Input: USD 25,000 at 7.5% for 5 years
Output: USD 500.95 monthly; USD 5,056.92 total interest

The 60 equal payments total USD 30,056.92 under the fixed-rate amortizing formula.

Frequently asked questions

How is the monthly payment calculated?
It uses the standard amortizing loan formula, which spreads the loan and interest evenly across every payment so the amount stays the same each month.
What happens with a zero interest rate?
The payment becomes the loan amount divided by the number of payments, because no interest is added.
Is this the same as an EMI calculator?
The core maths is the same. The EMI Calculator is presented for equated monthly installments, while this tool is a general-purpose loan calculator.

Helpful guides

Finance GuidesHow Loan and EMI Calculations WorkRead guide

Continue your workflow

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