Loan Calculator
$
5.00%
5 yrs
Monthly Payment$471.78
Total Interest$3,306.85
Total Amount$28,306.85
Payoff DateJune 2031
total cost$28.3K
Principal$25,000.00
Interest$3,306.85
Amortization Schedule
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $1,147.49 | $4,513.88 | $20,486.12 |
| 2 | $916.55 | $4,744.82 | $15,741.30 |
| 3 | $673.80 | $4,987.57 | $10,753.72 |
| 4 | $418.62 | $5,242.75 | $5,510.98 |
| 5 | $150.39 | $5,510.98 | $0.00 |
This loan calculator turns a borrowed amount, an annual interest rate, and a repayment term into a fixed monthly payment, then totals the interest and overall cost you will pay by the end. It works for personal, auto, student, and other fully amortizing fixed-rate loans where every monthly payment is identical. Alongside the headline numbers it projects an estimated payoff date and charts the split between the principal you borrowed and the interest you hand over.
Formula
M = P · r(1 + r)^n / ((1 + r)^n − 1)
- M
- Fixed monthly payment
- P
- Loan amount (principal borrowed)
- r
- Monthly interest rate = annual rate ÷ 12 ÷ 100
- n
- Total payments = term in years × 12
How it works
- Type the loan amount you want to borrow into the amount field.
- Drag the interest rate slider (0-30% in 0.125% increments) and the loan term slider (1-30 years) to match your loan offer.
- Read the monthly payment in the hero card, then review total interest, total amount repaid, and the projected payoff date. The donut chart and amortization table show how the balance is retired year by year.
Worked example
A $20,000 loan at a 6% annual rate repaid over 5 years.
- Monthly rate r = 6 ÷ 12 ÷ 100 = 0.005; number of payments n = 5 × 12 = 60.
- M = 20,000 × 0.005 × 1.005^60 ÷ (1.005^60 − 1) = $386.66 per month.
- Total amount repaid = 386.66 × 60 = $23,199.36.
- Total interest = 23,199.36 − 20,000 = $3,199.36.
The monthly payment is about $386.66, the total repaid is about $23,199.36, and total interest comes to roughly $3,199.36.
Frequently asked questions
- What kinds of loans does this calculator handle?
- Any fully amortizing fixed-rate loan with equal monthly payments, such as personal loans, auto loans, and most student loans. It is not designed for credit cards, interest-only loans, or balloon structures.
- How is the total interest calculated?
- It multiplies the fixed monthly payment by the number of months in the term to get the total amount repaid, then subtracts the original loan amount. Whatever is left over is the interest cost.
- How is the payoff date estimated?
- The calculator adds the loan term in whole years to today’s date, keeping the same month and day. It assumes you make every scheduled payment on time and never pay extra.
- Will a longer term lower my monthly payment?
- Yes, stretching the same loan over more years reduces each monthly payment, but because interest accrues for longer you end up paying more total interest over the life of the loan.