Loan Calculator
Enter your loan amount, annual interest rate (APR), and term to calculate your monthly payment, total repayment, and total interest paid. Works for personal loans, auto loans, student loans, and any fixed-rate installment loan.
Monthly Payment
$193.33
Total Repayment
$11,599.68
Total Interest
$1,599.68
Educational tool only. Results assume a fixed interest rate with equal monthly payments (standard amortization). Does not account for origination fees, variable rate adjustments, or prepayment. Consult your lender for exact figures.
How Loan Payments Are Calculated
Most consumer loans use standard amortization: each monthly payment covers the interest accrued that month plus a portion of the principal. Early payments are mostly interest; later payments are mostly principal. This is why paying off a loan early saves significant interest.
The Amortization Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1] Where: M = monthly payment P = loan principal (amount borrowed) r = monthly interest rate (APR ÷ 12) n = total number of payments (years × 12) Example: $10,000 loan at 6% APR for 5 years: r = 0.06 ÷ 12 = 0.005 n = 5 × 12 = 60 M = 10000 × [0.005 × (1.005)^60] / [(1.005)^60 - 1] M ≈ $193.33/month Total repayment: $11,599.68 Total interest: $1,599.68
FAQ
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 lender fees and other costs expressed as an annual rate. APR is higher than the interest rate and gives a more accurate picture of total borrowing cost. Use the APR in this calculator for the most realistic result.
Does paying extra each month save interest?
Yes — significantly. Any extra principal payment reduces the balance on which future interest is calculated. Paying an extra $50/month on a $10,000 loan at 6% for 5 years reduces total interest by about $175 and shortens the loan by about 3 months. Larger extra payments have proportionally larger effects.
How is this different from a mortgage calculator?
Mortgage calculators typically account for down payment and show the full home price context. The loan calculator works for any installment loan where you borrow a fixed amount. For a home purchase, use the mortgage calculator instead.
Want the full explanation? Read How Loan Interest Works →