Loan Calculator

Work out what any loan really costs with this free loan payment calculator monthly tool. Type the loan amount, the annual interest rate and the term, then press Calculate to see your monthly payment, the total interest and the total you will pay. Borrowers use it to compare offers before they sign. Everything runs in your browser, so your numbers never leave your device.

Estimate only. This is not financial advice and not a loan offer.

The loan payment formula in plain words

Monthly payment = P x r / (1 – (1 + r) to the power of -n). Here P is the loan amount, r is the monthly interest rate (the annual rate divided by 12), and n is the number of monthly payments. The tool uses this standard amortisation formula, then adds up every payment to find the total interest.

Solved example: a $10,000 loan at 5% for 12 months

Here is the math, step by step. Step 1: monthly rate = 5% / 12 = 0.4167%. Step 2: monthly payment = $10,000 x 0.004167 / (1 – (1 + 0.004167) to the power of -12) = $856.07. Step 3: total paid = $856.07 x 12 = $10,272.84. Step 4: total interest = $10,272.84 – $10,000 = $272.84. So the borrower pays $856.07 each month and $272.84 in interest over the year.

How to use this calculator

  1. Type the loan amount in dollars into the first box.
  2. Type the annual interest rate as a percent, then type the term and pick months or years.
  3. Press Calculate and read your monthly payment, the totals and the balance schedule.

Limits of this tool

This is a general estimate. It is not financial advice and not a loan offer. It leaves out fees, insurance, taxes and penalties, and it assumes a fixed rate with equal monthly payments. Your lender’s figures may differ, so check the full terms before you borrow.

Frequently asked questions

What does the monthly payment include?

Each payment covers part of the interest and part of the loan itself. Early payments are mostly interest, while later ones pay down more of the loan. The balance schedule shows this split for every period.

Does a longer term always cost more?

Yes, in total interest. Stretching the same loan over more months lowers each payment but raises what you pay overall, because interest keeps accruing for longer.

Why is my lender’s quote slightly different?

Lenders may add fees, round differently or count days their own way. This tool shows the pure amortisation math so you can compare offers on equal terms.

Can this loan payment calculator monthly tool handle a zero interest rate?

No. The tool needs a rate above zero to work out the amortisation. For a truly interest-free loan, just divide the amount by the number of months.

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