Calculate monthly payments, total interest, and total cost of a loan
This loan calculator computes your monthly payment, total interest paid, and overall cost for any loan. Whether you are financing a car, home, or personal expense, knowing your payment helps you budget effectively. This versatile calculator works for any type of amortizing loan, from personal loans to auto financing. By adjusting the loan amount, rate, and term, you can compare different borrowing scenarios and find the option that best fits your budget.
The calculator applies the standard amortizing loan payment formula to determine fixed monthly payments.
The interest rate is the cost of borrowing the principal, while APR includes fees and other costs, giving a more complete picture of loan expenses.
A longer loan term reduces your monthly payment but increases total interest. A shorter term saves interest but requires higher monthly payments.
This calculator works for any fixed-rate amortizing loan including personal loans, auto loans, student loans, debt consolidation loans, and mortgage loans. It does not handle adjustable-rate or interest-only products.
Shorter loan terms have higher monthly payments but significantly lower total interest. Longer terms reduce monthly payments but increase the total cost of borrowing substantially.
Simple interest is calculated only on the principal balance, while amortizing interest recalculates each month on the remaining balance. Most installment loans use amortizing interest.
Choose a shorter term if you can afford higher payments and want to minimize interest. Choose a longer term if you need lower monthly payments to fit your budget.