Loan Calculator
Work out the monthly payment on any fixed-rate loan, see what it really costs in interest, or turn it around: how much can you borrow for a payment you can afford, and how long will it take to clear?
Annual percentage rate
The cost of your credit as a yearly rate.
Finance charge
The dollar amount the credit will cost you.
Amount financed
The amount of credit provided to you.
Total of payments
What you'll have paid after all scheduled payments.
Payment schedule: 60 monthly payments of $500.95. APR equals the note rate here because no fees are included.
How the balance falls
Amortization schedule
| Year | Paid | Interest | Principal | Balance |
|---|---|---|---|---|
| Year 1 | $6,011.38 | $1,729.81 | $4,281.58 | $20,718.42 |
| Year 2 | $6,011.38 | $1,397.42 | $4,613.97 | $16,104.46 |
| Year 3 | $6,011.38 | $1,039.22 | $4,972.16 | $11,132.29 |
| Year 4 | $6,011.38 | $653.22 | $5,358.16 | $5,774.13 |
| Year 5 | $6,011.38 | $237.25 | $5,774.13 | $0.00 |
Explain my numbers in plain English
Sends only the numbers shown above (and your question) to an AI model via Vercel AI Gateway. Nothing is stored. It's a plain-language read, not financial advice.
How this loan calculator works
Almost every car loan, personal loan, student loan and fixed-rate mortgage in the US is a fully amortizing installment loan: one fixed payment every month, sized so the last payment brings the balance to exactly zero. The payment comes from one formula:
M = P × r ÷ (1 − (1 + r)−n)
P is the amount borrowed, r is the annual rate ÷ 12, and n is the number of payments. At 7.5% on $25,000 over 5 years, r = 0.00625 and n = 60, which gives $500.95 a month and $5,057 in interest.
Switch the calculator to How much I can borrow and it solves the same formula for P, which is what a lender does when you tell it your budget. How long to pay off solves for n, which is handy when you already know what you can put toward a balance each month.
Want to see why interest front-loads? Drag across the balance chart above, or step through it month by month in our guide to how loan interest is calculated.
Every calculator in the kit
Questions people ask
How is a monthly loan payment calculated?
Most installment loans use the standard amortization formula: payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the annual rate divided by 12, and n is the number of monthly payments. The payment stays the same every month; only the split between interest and principal changes.
Why does so much of my early payment go to interest?
Interest is charged on the balance you still owe. At the start the balance is at its largest, so the interest slice is too. Each payment shrinks the balance, which shrinks next month’s interest and lets more of the same payment go to principal.
What is the difference between the interest rate and the APR?
The interest rate prices the money itself. The APR, required on US loan disclosures by the Truth in Lending Act, folds in most upfront finance charges such as origination fees, so it is the better number for comparing offers. Use our APR calculator to see the effect of a fee.
Is a longer loan term cheaper?
A longer term lowers the monthly payment but almost always raises the total interest, because you owe money for longer. Compare the total of payments, not just the monthly figure.
Does this calculator include taxes, insurance or fees?
The general loan calculator covers principal and interest. For car sales tax and trade-ins use the auto loan calculator; for property tax, insurance, PMI and HOA use the home loan calculator; for origination fees use the personal loan or APR calculators.