Loan Calculator
Calculate the monthly payment, total interest, and payoff schedule for any fixed-rate loan. Enter the amount, rate, and term.
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,389 | $1,478 | $16,611 |
| 2 | $3,670 | $1,196 | $12,941 |
| 3 | $3,975 | $892 | $8,966 |
| 4 | $4,305 | $562 | $4,662 |
| 5 | $4,662 | $204 | $0 |
Assumes a fixed rate and equal monthly payments. Excludes fees unless included in the rate.
How to use this calculator
Enter the loan amount, the interest rate, and the term in years. The calculator returns your monthly payment, total interest, total repaid, and a year-by-year breakdown.
How loans work
Most consumer loans are fully amortizing and fixed-rate: you pay the same amount monthly, and over time more of each payment goes to principal and less to interest as the balance falls.
Worked example
A $20,000 loan at 8% over 5 years is about $406/month with roughly $4,300 in total interest.
The formula
Payment = P · [ r(1 + r)n ] / [ (1 + r)n − 1 ], with monthly rate r and n payments.
Frequently asked questions
How is a loan payment calculated?
A fixed-rate loan uses an amortization formula: each equal monthly payment covers the interest on the remaining balance plus some principal, so the loan is fully paid off by the end of the term.
What affects my monthly payment?
The loan amount, the interest rate, and the term. A larger amount or higher rate raises the payment; a longer term lowers the monthly payment but increases total interest.
Does a longer term cost more?
Yes. Stretching a loan over more years lowers each payment but means you pay interest for longer, so the total cost is higher than a shorter term at the same rate.
What is APR?
APR (annual percentage rate) is the yearly cost of the loan including certain fees, expressed as a percentage. It's the best single number for comparing loan offers.