What this loan calculator shows
Enter how much you want to borrow, the interest rate and the length of the loan. You get the monthly payment, the total interest, and the date you will be debt-free, plus a year-by-year or month-by-month schedule.
It suits personal loans, student loans, business loans and most instalment credit. For house purchases use the mortgage calculator, which adds taxes and insurance.
Why interest costs more than it looks
At the start of a loan almost every payment is interest, because the balance is at its highest. That is why the first months barely dent what you owe, and why paying extra early is so effective.
A longer term feels cheaper each month but can add thousands in interest. Use the Total cost view to compare the full price of different terms rather than just the monthly figure.
Ways to pay less
Shop for a lower rate, borrow a little less, shorten the term if your budget allows, and ask whether there is a penalty for repaying early before you rely on extra payments. Origination fees add to the cost even though they are not part of the payment, so enter them under More options.
Questions people ask
How is the monthly payment on a loan calculated?
For a fixed-rate loan each payment is P·r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the monthly rate (the annual rate divided by 12) and n is the number of monthly payments. At 0% the payment is just P ÷ n.
What is the difference between the interest rate and the APR?
The interest rate is the cost of the money itself. The APR also folds in lender fees, so it is the better number for comparing offers. This calculator treats the rate you enter as the interest rate and shows any origination fee as a separate line.
Is it better to choose a shorter term?
A shorter term has a higher monthly payment but far less total interest. A longer term lowers the payment but you pay interest for more months. Compare two terms by changing only the term field.
What happens if I make extra payments?
Extra money goes straight to the balance, so less interest builds up each month. The calculator replays the whole schedule and shows the exact interest saved and months removed.
Does this work for variable-rate or interest-only loans?
No. It models fixed-rate loans that are paid off in equal monthly instalments. For a variable rate, recalculate with the new rate and remaining balance each time it changes.