Loan Calculator
Calculate the monthly payment, total interest, and payoff schedule for any fixed-rate installment loan.
About the Loan Calculator
Whether it is a personal loan, a debt-consolidation loan, or financing for equipment, most fixed loans are repaid the same way: equal monthly installments that blend interest and principal until the balance reaches zero. This general-purpose loan calculator works for any amount, rate, and term, producing a monthly payment figure, total interest cost, and a schedule you can compare across offers.
How It Works
Enter the amount you are borrowing, the annual interest rate the lender quotes, and how many years you will take to repay it. The calculator converts the annual rate into a monthly rate and applies the amortization formula used by virtually every fixed-rate lender to compute a payment that fully retires the loan by the final month, then totals the interest paid across every scheduled payment.
Payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is principal, r is the monthly rate, and n is the total number of payments.
Example
Scenario: Borrowing $20,000 at 8% annual interest over 5 years.
Result: Monthly payment of about $405.53, with total interest of roughly $4,332 over the full term.
Assumptions & Limitations
- Assumes a fixed rate and equal monthly payments with no missed or late payments.
- Interest compounds monthly, the convention used by most installment lenders.
- Does not include origination fees, prepayment penalties, or variable-rate adjustments.
- Real lender quotes may round the payment slightly differently than this estimate.