FINANCIAL CALCULATOR
Loan Calculator
Calculate your estimated monthly loan payment, total interest, and total amount paid based on the loan amount, interest rate, and repayment term.
Loan breakdown
This calculator provides an estimate based on the information entered. Actual loan payments and costs may vary depending on fees, taxes, insurance, lender terms, and other factors.
How to Use the Loan Calculator
Enter the amount you want to borrow, your annual interest rate, and the length of the loan. The calculator estimates your monthly payment and the total cost of the loan.
What Does the Loan Calculator Calculate?
- Estimated monthly loan payment
- Original loan principal
- Total interest paid
- Total amount paid over the loan term
Loan Payment Formula
For a fixed-rate loan, the monthly payment is calculated using the loan principal, monthly interest rate, and number of monthly payments.
The calculator also handles loans with a 0% interest rate by dividing the principal evenly across the repayment period.
Loan Calculator Example
Suppose you borrow $25,000 at an annual interest rate of 7% for 5 years. The calculator uses these values to estimate your monthly payment and the total interest you would pay over the five-year term.
The actual cost of a loan may differ depending on lender fees, origination charges, payment schedules, and other terms associated with the loan.
Frequently Asked Questions
How is the monthly loan payment calculated?
The monthly payment is calculated using the loan principal, monthly interest rate, and total number of monthly payments. Fixed-rate loans use a standard amortization formula.
Does the calculator include loan fees?
No. The calculator estimates principal and interest payments. Additional lender fees or charges can increase the actual cost of borrowing.
What happens if the interest rate is 0%?
When the interest rate is 0%, the calculator divides the loan amount evenly across the number of monthly payments.
What is the difference between principal and interest?
Principal is the original amount borrowed. Interest is the additional amount paid to the lender for borrowing the money.