Loan Calculator — Payment, Interest & Payoff Date

Enter Parameters

Adjust sliders or type values directly

Loan Amount

Annual Interest Rate

Loan Tenure (Years)

years

Real-time Calculation Ready

Adjust parameters to see instant results

AI Summary & Key Formula

Loan Calculator Quick Reference

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Quick Answer

A loan calculator returns the fixed monthly payment that clears a loan by the end of its term, using Payment = P × r / (1 − (1 + r)^−n), where r is the monthly rate and n the number of months. For example, borrowing $25,000 at 8% for 5 years costs $506.91 a month and $5,414.59 in interest; shortening the term to 3 years raises the payment to $783.41 but cuts interest to $3,202.73. Use it to compare offers and terms; it assumes a fixed rate, monthly payments and no fees, so check each lender's APR as well.

How This Calculation Works

Values calculate dynamically in real-time as you enter figures or adjust sliders.
The equation on the right is exactly what the calculator runs — check any result by hand.

Core Equation

Monthly Payment = P × r / (1 − (1 + r)^(−n))
Where:
  P = Loan amount | r = Monthly rate | n = Months

Total Interest = (Monthly Payment × n) − P
Payoff Date = Today + n months

How to Use the Loan Calculator

Quick 3-step guide for accurate and fast calculations

STEP 01

Enter your loan amount

In the Loan Calculator, fill in Loan Amount, Annual Interest Rate and Loan Tenure (Years).

STEP 02

Read your monthly payment

The Loan Calculator instantly shows Monthly Payment, Total Interest and Total Amount, updating as you type.

STEP 03

Compare scenarios

Change Annual Interest Rate to see how it affects Monthly Payment, then check the formula below to verify the math.

Specific Instructions:

Enter the total loan amount, the annual interest rate and the repayment term in years. The calculator shows your fixed monthly payment, the total interest cost and the total amount you will repay. Try different terms to see the trade-off: a shorter term raises the monthly payment but reduces total interest.

Loan Calculator Formula

The Loan Calculator uses the following formula, calculated in your browser as you change the inputs:

Monthly Payment = P × r / (1 − (1 + r)^(−n)) Where: P = Loan amount | r = Monthly rate | n = Months Total Interest = (Monthly Payment × n) − P Payoff Date = Today + n months

Sources:

Worked Example: Loan Calculator

Loan: $25,000 | Rate: 8% p.a. | Term: 60 months Monthly rate = 8/12/100 = 0.00667 Payment = 25,000 × 0.00667 / (1 − (1.00667)⁻⁶⁰) ≈ $506.91/mo Total repaid: $30,415 | Interest: $5,415

Calculations run in your browser — your inputs are never stored on our servers.Formula sources & methodology

Frequently Asked Questions — Loan Calculator

How can I reduce the total interest I pay on a loan?

The most effective ways to reduce total loan interest are: (1) Make extra payments towards the principal whenever possible — even one extra payment per year can cut years off the term. (2) Choose a shorter loan term. (3) Refinance to a lower rate if market rates have dropped. (4) Make bi-weekly instead of monthly payments — this results in one extra full payment per year.

What is the annual percentage rate (APR) vs interest rate?

The interest rate is the cost of borrowing the principal only. The APR (Annual Percentage Rate) includes the interest rate plus all fees and costs associated with the loan (origination fees, closing costs, insurance). APR gives a more complete picture of the true cost of a loan and enables like-for-like comparison between lenders.

Can I pay off a loan early without penalty?

Many personal loans and mortgages allow early payoff without penalty. Auto loans, student loans, and some mortgages may have prepayment penalties, particularly if you pay off within the first 1–3 years. Always check your loan agreement's prepayment clause before making extra payments or paying off early.