Loan Calculator – Monthly Payment & Amortization

How to use the Loan Calculator

Choose your currency and enter the amount you want to borrow.
Enter the annual interest rate (APR).
Enter the term in years or months.
Read the monthly payment, total interest and the amortization schedule.

How loan payments are calculated

Most personal, auto and student loans are amortizing loans: you pay the same amount every month, and each payment covers that month's interest and repays part of the principal. Early payments are mostly interest; later payments are mostly principal. The calculator uses the standard amortization formula lenders use, so the payment matches a fixed-rate quote for the same amount, rate and term.

APR, term and total cost

Two loans with the same monthly payment can cost very different amounts. A longer term lowers the payment but increases the total interest, sometimes dramatically. Before you sign, compare the total interest and total repaid figures, not just the monthly payment. If the lender quotes an APR that includes fees, enter the APR to see the true cost.

Ways to pay less interest

Choose the shortest term you can afford. Try a few terms and watch the total interest fall.
Improve your credit score before applying; better scores get lower rates.
Make extra payments when your loan allows it without penalty. See the effect with the prepayment calculator.
Compare lenders. Even one percentage point makes a noticeable difference on larger loans.

Related calculators

Buying a home? The mortgage calculator adds property tax, insurance and PMI. Working out interest on savings instead? Try the simple and compound interest calculator.

Reading the amortization schedule

The yearly table shows how much of your payments went to principal and interest each year, and the balance left at the end of the year. In the first years most of each payment is interest, which is why paying extra early in the loan saves the most. The balance column also tells you roughly how much you would need to clear the loan early at any point, before any prepayment fees the lender may charge.

Frequently asked questions

How is a monthly loan payment calculated?

With the amortization formula: payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the monthly rate and n the number of payments.

Does a longer term save money?

No. It lowers the monthly payment but increases the total interest you pay.

Should I enter the APR or the interest rate?

Enter the APR if you know it, because it includes most fees and shows the true cost of borrowing.

Which currencies are supported?

Any common currency. The calculator picks yours automatically, and you can change it in the Currency menu.