Loan Calculator
Calculate your monthly loan payment, total interest and total amount repaid.
Monthly payment: 304.22
Total interest: 951.9
Total repaid: 10,951.9
Principal vs. interest
Remaining balance over time
Amortization schedule
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | 3,650.63 | 3,135.94 | 514.69 | 6,864.06 |
| 2 | 3,650.63 | 3,329.36 | 321.28 | 3,534.7 |
| 3 | 3,650.63 | 3,534.7 | 115.93 | 0 |
About this tool
This calculator estimates the monthly payment for a fixed-rate, fully amortizing loan — the most common type of personal loan, auto loan or mortgage, where you pay the same amount every month until the loan is paid off.
Each monthly payment is split between interest and principal. Early in the loan, more of each payment goes toward interest; as the balance shrinks, more goes toward paying down the principal — even though the payment amount itself stays constant.
This tool is for estimation purposes: actual loan offers may include fees, insurance or a variable rate not reflected here. Always check the exact terms with your lender before signing.
Worked example
- 1Enter the loan amount, the annual interest rate, and the loan term in years.
- 2The calculator converts the annual rate to a monthly rate and the term to a number of months, then applies the standard amortization formula.
- 3Example: $10,000 at 6% for 3 years → a monthly payment of about $304, for a total of roughly $952 in interest over the life of the loan.
Formula
M = P × r × (1+r)^n / ((1+r)^n − 1), where P = principal, r = monthly interest rate, n = number of monthly payments
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Frequently asked questions
- How is the monthly payment calculated?
- The calculator uses the standard loan amortization formula, which spreads the principal and interest evenly across every monthly payment so the loan is fully paid off at the end of the term.
- Why does more interest get paid at the start of the loan?
- Interest is charged on the remaining balance, which is highest at the beginning. As you pay down the principal, the interest portion of each payment shrinks even though the total payment stays the same.
- Does this include fees or insurance?
- No — this calculates pure principal-and-interest payments only. Real loans often add origination fees, insurance or closing costs, which will increase your actual cost.
- What happens if I make extra payments?
- Extra payments reduce the principal faster, which reduces the total interest paid and can shorten the loan term — though this calculator shows the standard schedule without extra payments.