Loan Calculator
Enter amount, interest rate and term — and see your monthly payment, the total interest and what the loan really costs. For car loans, personal loans and mortgages.
Your monthly payment –
Principal and interest only — insurance, taxes and fees are not included. Rates are assumed fixed for the whole term.
How the loan payment is calculated
The calculator uses the standard annuity formula that banks use for fixed-rate loans: every month you pay the same amount, consisting of interest on the remaining balance plus repayment. Early payments are interest-heavy; over time the repayment share grows.
Enter your numbers
Loan amount, the annual interest rate from the offer, and the term in years.
Read the payment
The monthly payment updates live — the number that has to fit your budget.
Compare total interest
Total interest is the loan's true cost. Compare it across offers and terms, not just the monthly rate.
Monthly payment vs. total cost
The classic mistake when comparing loans is looking only at the monthly payment. Stretching a $20,000 loan at 6.5% from 5 to 8 years drops the payment from about $391 to $268 — but raises the total interest from roughly $3,480 to $5,760. The longer term costs about $2,280 more for the same car. That's why this calculator always shows both numbers: the payment that must fit your month, and the total interest that decides which offer is actually cheaper.
Frequently asked questions
How is the monthly loan payment calculated?
With the standard annuity formula: the loan amount times the monthly rate, divided by one minus (1 + monthly rate) to the power of minus the number of months. This calculator applies it live as you type.
What does total interest mean?
Total interest is everything you pay on top of the borrowed amount: monthly payment × number of months − loan amount. It's the true cost of the loan and the best number for comparing offers.
Does a longer term make a loan cheaper?
A longer term lowers the monthly payment but increases the total interest, because you pay interest for more months. Compare both numbers before choosing a term.
Is this calculator suitable for mortgages?
Yes, the annuity math is the same for mortgages, car loans and personal loans. Note that it shows principal and interest only — taxes, insurance and fees come on top.