Loan Calculator
Calculate monthly loan payment, total repayment, and total interest. Enter loan amount, annual interest rate, and term in months. For a full month-by-month schedule, use the Amortization Calculator.
Free · Runs in your browser · No signup
Examples to try
Click an example to fill the form and calculate instantly.
Payment formula
M = P × [r(1+r)n] / [(1+r)n − 1]
P = principal, r = annual rate ÷ 12, n = months. If rate is 0, M = P ÷ n.
Common mistakes
- Entering the term in years while this page expects months (30 years = 360 months).
- Using monthly rate instead of annual APR (the tool divides by 12 for you).
- Comparing lenders without including fees, insurance, or prepayment rules.
- Forgetting that early payments are mostly interest — use the amortization calculator for a schedule.
Scope: Educational payment estimate for fixed-rate amortizing loans. Not a lender quote or financial advice.
How to Use
Enter loan amount, annual rate, and term in months, then click Calculate. Payment math runs in your browser. For a month-by-month principal/interest breakdown, open the Amortization Calculator.
Related Calculators
Loan Payment Formula Explained
Our loan calculator uses the standard amortization formula to compute your monthly payment. The formula takes into account the principal amount, annual interest rate, and loan term. The result shows your fixed monthly payment, the total amount you'll pay over the life of the loan, and the total interest cost. This helps you compare different loan offers and choose the most affordable option.
Understanding Amortization
Amortization is the process of spreading a loan into fixed payments over time. In the early months, most of your payment goes toward interest. As you pay down the principal, a larger portion of each payment reduces the balance. For a month-by-month principal vs. interest breakdown, use our Amortization Calculator. This loan page focuses on payment, total cost, and total interest.
Understanding Loan Payments
When you take out a loan, your monthly payment is determined by three factors: the principal (the amount borrowed), the interest rate (the cost of borrowing), and the term (how long you repay). CalcSolver's loan calculator uses the standard amortization formula M = P × [r(1+r)^n] / [(1+r)^n − 1] to give you accurate results instantly.
For example, a $25,000 personal loan at 8% APR for 36 months results in a monthly payment of approximately $781.78, with total interest of $3,144 over the life of the loan. Shortening the term to 24 months increases the monthly payment to $1,136 but reduces total interest to just $1,663 — saving you nearly $1,500.
To get the best loan terms, compare offers from at least three lenders, improve your credit score before applying, and consider making extra payments toward principal. Even one extra payment per year can significantly reduce your total interest cost and shorten your repayment timeline. Use CalcSolver's mortgage calculator and amortization calculator to plan larger loans.
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Frequently Asked Questions
How is the monthly loan payment calculated?
The monthly payment uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments.
What is the difference between fixed-rate and variable-rate loans?
A fixed-rate loan keeps the same interest rate throughout the term, so your monthly payment never changes. A variable-rate (adjustable-rate) loan can change periodically based on market conditions, which means your payment may increase or decrease over time.
How can I reduce the total interest paid on a loan?
You can reduce total interest by: making a larger down payment, choosing a shorter loan term, making extra payments toward the principal, or refinancing at a lower rate when available.
Does paying off a loan early save money?
Yes, paying off a loan early reduces the total interest you pay. However, check if your loan has a prepayment penalty. Even small extra payments toward principal can significantly reduce the total cost and shorten the loan term.