Financial Calculators
Loan Calculator
Calculate the monthly payment, total interest, and overall cost of any fixed-rate installment loan.
Quick guide
Enter the amount you borrow, the annual interest rate, and the term to see the fixed monthly payment of an installment loan. You also get the total interest and total cost, so you can compare offers by changing one input at a time.
Read the full explanationHow It Works
Installment loans amortize: a fixed monthly payment covers interest on the remaining balance first, then reduces principal until the loan reaches zero.
Formula Used
M = P · r(1+r)ⁿ / ((1+r)ⁿ − 1), with r = annual rate ÷ 12 and n = months.
Example Calculation
A $25,000 loan at 9% for 5 years costs about $519 per month and roughly $6,138 in total interest.
Practical Use Cases
- Compare lender offers on identical terms.
- Check whether a monthly payment fits your budget.
- See how much a lower rate saves over the life of the loan.
Use This Calculator Step by Step
- Enter the amount borrowed, not the total of all future repayments.
- Choose the annual interest rate and term, then compare scenarios with one changed input at a time.
- Check both the monthly payment and the sum of interest over the full schedule.
Check Your Result
A $10,000 balance at 0% for 5 years has 60 monthly payments of about $166.67 before any fees. This zero-rate case is a useful check that years have been converted to months.
Assumptions and Limits
- The tool assumes an amortizing fixed-rate loan and does not model variable rates or missed payments.
- Origination charges, penalties, insurance, and local lender conventions are not automatically included.
A Common Question
Does a lower monthly payment always mean a cheaper loan?
No. Extending the term can lower each payment while increasing the total interest. Compare the same amount and examine fees as well as the repayment schedule.