Loan Calculator
Estimate your monthly payment and total interest on any loan.
Loan details
Monthly payment
$489.15
Over 5 years (60 payments)
Principal vs interest
- Total interest
- $4,349.22
- Total paid
- $29,349.22
What does this mean?
This calculator works out the fixed monthly payment for an amortizing loan — the type used for most car loans and personal loans. Every payment is the same size, but the split changes over time: early on most of it covers interest, and later most of it pays down the principal.
The formula
The monthly payment is M = P × [ r(1+r)^N ] / [ (1+r)^N − 1 ], where P is the loan amount, r is the monthly interest rate (the annual rate divided by 12), and N is the total number of monthly payments.
A quick example
Borrow $25,000 at 6.5% over 5 years and your payment is fixed each month. The “total interest” figure shows the real cost of borrowing — often a surprise, and a good reason to compare a shorter term or a larger deposit.
Tip: a shorter term raises the monthly payment but usually slashes the total interest you pay over the life of the loan.
Frequently asked questions
How is my monthly loan payment calculated?+
It uses the standard amortization formula, which spreads the loan and its interest evenly across equal monthly payments so the balance reaches zero at the end of the term.
Why do I pay more interest at the start of a loan?+
Interest is charged on the remaining balance. At the start the balance is highest, so more of each payment goes to interest and less to principal. This flips over time.
Does this include fees, taxes or insurance?+
No. It calculates principal and interest only. Real loans may add origination fees, insurance or taxes, so your actual payment can be a little higher.
Can I use this for a mortgage?+
The payment math is the same, but mortgages often include taxes, insurance and other country-specific costs. Use it as an estimate of the principal-and-interest portion only. This is not financial advice.