Loan Calculator
Calculate monthly loan payments, total interest, and the full amortization schedule for any personal, student, or business loan.
Frequently Asked Questions
How is a loan payment calculated?
Monthly payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. A $10,000 loan at 7.5% for 5 years results in a monthly payment of approximately $200.38.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus any fees (origination fees, closing costs), expressed as a yearly rate. APR is almost always higher than the interest rate and is the better comparison tool when shopping for loans.
Should I choose a longer or shorter loan term?
A longer term means lower monthly payments but much more total interest. A shorter term means higher payments but significant interest savings. For example, a $20,000 loan at 6% costs $386/month over 5 years ($3,199 in interest) vs. $222/month over 10 years ($6,645 in interest). Pay off debt as fast as your budget allows.