Loan Calculator
Estimate your monthly loan payment, total interest and total repayment from the loan amount, annual interest rate and repayment period.
Loan Details
Enter the values below to estimate a standard fixed-payment loan.
| Loan Detail | Value |
|---|---|
| Principal | — |
| Annual Interest Rate | — |
| Loan Term | — |
| Payment Frequency | — |
Where P is the loan principal, r is the interest rate per payment period and n is the total number of payments.
Compare Loan Scenarios
Try different interest rates or repayment periods to see how the estimated payment changes.
What Is a Loan Calculator?
A Loan Calculator is an online mathematical tool that estimates periodic payments, total interest and total repayment for a loan. It uses information such as the amount borrowed, interest rate and repayment period.
Loan calculators are useful for understanding how different borrowing scenarios may affect payments. They are especially useful when comparing different loan amounts, interest rates or repayment periods.
How Does a Loan Calculator Work?
The calculator converts the annual interest rate into a rate for the selected payment period. It then applies a standard fixed-payment loan formula to calculate the estimated payment amount.
The total number of payments depends on the repayment term and the selected payment frequency. The calculator then estimates total repayment and the difference between that amount and the original principal as total interest.
Loan Amount
The loan amount, also called the principal, is the amount being borrowed before interest and additional charges.
Increasing the principal generally increases the calculated periodic payment when the other inputs remain unchanged.
Interest Rate
The interest rate represents the annual rate used in the calculation. A higher interest rate generally produces a higher payment and greater total interest when other assumptions remain unchanged.
Loan Term
The loan term determines how long the repayment is scheduled to continue. The calculator converts the selected number of years into the corresponding number of payment periods.
Extending a loan term can reduce the amount paid during each period in some situations, while increasing the number of payments and potentially increasing total interest.
Payment Frequency
Payment frequency determines how often payments are made. This calculator supports monthly, biweekly, weekly, quarterly and annual frequencies.
The payment frequency affects both the periodic payment calculation and the total number of payments. Actual loan products may use different conventions, so the calculator should be compared with the lender's stated terms.
Monthly Payment Example
Suppose a borrower enters a principal of $25,000, an annual interest rate of 7.5% and a five-year term. The calculator can estimate a regular payment based on those assumptions.
The exact result depends on the selected payment frequency and the mathematical assumptions used by the calculator.
What Is Total Interest?
Total interest is the estimated amount paid above the original principal under the calculation assumptions. It can be calculated by subtracting the principal from the total of all calculated payments.
What Is Total Repayment?
Total repayment represents the total of all estimated periodic payments over the full repayment period.
It includes the principal and calculated interest but does not necessarily include additional real-world charges such as taxes, insurance, application fees, processing fees or penalties.
Factors That Can Change the Actual Loan Cost
- Interest rate and rate structure.
- Loan term.
- Payment frequency.
- Processing or origination fees.
- Insurance or other required charges.
- Taxes and government charges.
- Late-payment charges or other penalties.
Why Compare Different Loan Terms?
Comparing loan terms can show how changes to the repayment period affect periodic payment and estimated interest. A shorter period can lead to higher periodic payments but may reduce the amount of interest paid over time.
A longer period may make periodic payments smaller in some situations, but the additional payment periods can increase total interest.
How to Use the Loan Calculator
- Enter the loan amount.
- Enter the annual interest rate.
- Enter the repayment term.
- Select the payment frequency.
- Click Calculate Loan.
- Review the periodic payment, total interest and total repayment.
- Try alternative values to compare scenarios.
Is a Loan Calculator Financial Advice?
No. This tool performs mathematical calculations based on the values entered. It does not assess whether a particular loan is suitable for an individual.
Before making an important borrowing decision, review the actual lender documents and consider obtaining appropriate financial advice.
Does the Calculator Store Loan Information?
The basic calculations on this page are performed directly in the browser. The loan inputs do not need to be transmitted to a remote calculation service.
Loan Calculator FAQ
Common questions about loan payment calculations.
Yes. The Loan Calculator is free to use.
It estimates the payment per period, total interest and total repayment using the values entered.
No. A basic calculation may not include lender fees, taxes, insurance, penalties or other additional charges.
Yes. Change the loan amount, interest rate or repayment period and calculate again to compare different scenarios.
Not necessarily. A longer term may reduce the payment per period but can increase the total interest paid.
No. It is a general mathematical calculator and does not provide personalized financial advice.