Loan Calculator

Calculate monthly payments, total interest, and payoff schedule for any personal loan. Free loan calculator with amortization and total cost breakdown.

A loan calculator estimates your monthly payment for any amortized loan — personal loans, student loans, business loans, and more. Enter the loan amount, interest rate, and term, and the calculator applies the standard amortization formula to produce your monthly payment, total payback amount, and total interest cost. No hidden math, just transparent numbers. This tool is useful whether you are shopping for a loan and want to compare offers, or planning to consolidate existing debt. Adjust the interest rate or term length to see how even a small difference in the APR changes the total cost of borrowing over time. All calculations run in your browser — no personal or financial data is ever collected.

loan

Result

512.91

Breakdown

Total Paid
30,775
Total Interest
5,775

About Loan Calculator

What is loan calculator?

A loan calculator estimates your monthly payment for any amortized loan — personal loans, student loans, business loans, and more. Enter the loan amount, interest rate, and term, and the calculator applies the standard amortization formula to produce your monthly payment, total payback amount, and total interest cost. No hidden math, just transparent numbers. This tool is useful whether you are shopping for a loan and want to compare offers, or planning to consolidate existing debt. Adjust the interest rate or term length to see how even a small difference in the APR changes the total cost of borrowing over time. All calculations run in your browser — no personal or financial data is ever collected.

How to use this calculator

  1. Enter your loan amount.
  2. Enter your interest rate.
  3. Enter your loan term.
  4. Click the "Calculate" button.
  5. View your result instantly — the main result is displayed prominently at the top with a detailed breakdown below it.

When to use this calculator

  • Comparing loan offers with different interest rates and terms
  • Estimating the monthly cost of a personal loan before applying
  • Calculating the total interest paid over the life of a loan
  • Planning debt consolidation and seeing how term length affects payments
  • Teaching students how amortized loans work

How the calculation works

This calculator uses the standard installment loan amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments. For example, a $25,000 loan at 8.5% APR over 5 years (60 months): r = 0.007083, n = 60, and M = 25,000 × [0.007083 × (1.007083)^60] / [(1.007083)^60 − 1] ≈ $513 per month. Total paid = M × 60 ≈ $30,767, and total interest = $30,767 − $25,000 = $5,767.

Frequently Asked Questions

How is loan interest calculated?
Most loans use amortized interest where each payment covers accrued interest plus a portion of principal. The formula is M = P[r(1+r)^n]/[(1+r)^n-1].
What is APR vs interest rate?
The interest rate is the cost of borrowing the principal. APR includes the interest rate plus fees, giving the true yearly cost of the loan.

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