Calculate monthly payments, total interest, and amortization
Monthly Payment
44,904
Total Payment
16,165,609
Total Interest
6,165,609
Interest Ratio
38.1%
Loan Amount (62%)
Interest (38%)
Amortization Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]
M = monthly payment, P = principal, r = monthly interest rate, n = total number of payments. This formula calculates equal monthly payments for a fixed-rate loan.
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What is a Loan Calculator?
A loan calculator lets you enter the amount you want to borrow, the annual interest rate, and the repayment term, then instantly shows your monthly payment, the total you will repay, and the total interest you will pay. It works for any fixed-installment loan — mortgages, auto loans, personal loans, or student loans — that uses equal monthly payments (amortization). Knowing your monthly burden and the full lifetime cost before you sign is the first step toward a realistic repayment plan. Because interest is the price you pay for borrowing, even a small change in the rate or term can move the total cost by a surprising amount. Try a few different rates and terms to see how the numbers respond and to find a plan that fits your budget.
How to Use
1. Enter the loan amount (the principal you wish to borrow).
2. Enter the annual interest rate (%). Note whether your loan is fixed or variable.
3. Enter the repayment term in years.
4. Press calculate to see the monthly payment, total repayment, and total interest.
Adjust the rate and term step by step to compare your monthly burden against the overall cost.
Formula & Definition
The monthly payment M for an amortizing loan is:
M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100), and n is the number of payments (years × 12). The total repayment is M × n, and total interest is (total repayment − principal). For example, borrowing $30,000 at 6% for 5 years (60 payments) gives a monthly rate of 0.005, a monthly payment of about $580, and total interest near $4,800. If the rate is 0, the payment is simply the principal divided by the number of months.
Interpreting Results
Your monthly payment shows whether the loan fits comfortably within your budget. A common guideline is to keep total housing costs at or below roughly 28–36% of gross income, though norms vary by country and lender. Total interest is the cost of borrowing: lengthening the term lowers each payment but raises total interest, while shortening it does the opposite. Making extra or early payments can cut interest significantly, since interest accrues on the remaining balance. Remember that this calculation covers principal and interest only — real loans often add origination fees, insurance, or taxes, so always confirm the lender's full annual percentage rate (APR) and total cost before committing.
Frequently Asked Questions
What's the difference between fixed and variable rates? ▾
A fixed rate stays the same for the life of the loan, making payments predictable. A variable rate can rise or fall with the market, changing your payment over time. This tool assumes a fixed rate.
Does a small rate difference really matter? ▾
Yes. On large, long-term loans, even a fraction of a percent can change total interest by thousands. Always compare offers using the APR, which includes fees.
How do extra payments help? ▾
Paying more than required reduces the principal faster, so less interest accrues afterward. The earlier in the term you do it, the greater the savings.
Are fees included in the result? ▾
No. This tool calculates principal and interest only. Real loans may add origination fees, insurance, and taxes, so check the lender's full cost disclosure.
This tool provides general estimates only and is not financial advice or a guarantee of any loan terms. Actual terms vary by lender. Consult a qualified professional before making important decisions.