Loan Calculator
Calculate monthly loan payments, total interest, and understand how your balance decreases over time.
| Month | Payment | Principal | Interest | Balance |
|---|
Informational estimate only. Taxes, insurance, escrow, and lender fees are not included.
How it works
This calculator assumes a fixed-rate amortizing loan where the same payment is made every month. Each payment is split into interest and principal.
Formula:
M = P × (r(1+r)^n) ÷ ((1+r)^n − 1)
Result interpretation:
- Monthly payment: the fixed amount you pay each month
- Total interest: the total cost of borrowing
- Total paid: loan amount + total interest
In early months, a larger portion of your payment goes toward interest. Over time, more of each payment goes toward reducing the principal balance.
Examples
- Car loan: Estimate monthly payment before buying a vehicle.
- Personal loan planning: Compare different loan terms to minimize interest.
- Mortgage preview: Understand how long-term loans accumulate interest.
Example:
- $10,000 at 5% for 5 years → monthly ≈ $188.71
- Total paid ≈ $11,322 → interest ≈ $1,322
When to use this tool
This tool is designed for quick, practical tasks such as everyday calculations, data formatting, or simple conversions. It is best used when you need fast results without installing software or using complex tools.
When to use
- Quick checks or one-time calculations
- Validating or converting data before using it elsewhere
- Simple tasks that do not require advanced software
When not to use
- Critical financial, legal, or medical decisions
- Large-scale or automated processing
- Situations requiring guaranteed precision beyond basic validation
Always review results before using them in important contexts.
About this tool
This tool helps you perform quick utility operations directly in your browser. It runs entirely in your browser without sending data to a server.
You can use this tool when handling simple tasks without installing additional software. The results should be interpreted as a processed output based on your input data.
FAQ
- What does this loan calculator include?
It calculates principal-and-interest (P&I) only: monthly payment, total interest, total paid, and an amortization schedule. It does not include taxes, insurance, or lender-specific fees.
- What is an amortization schedule?
An amortization schedule is a detailed month-by-month breakdown showing how each payment is divided between interest and principal, and how your remaining balance decreases over time.
- What happens if the interest rate is 0%?
If the interest rate is 0%, the monthly payment is simply the loan amount divided by the total number of months, and no interest is paid.
- Why might my lender’s numbers differ?
Lenders may include fees, use different rounding rules, or apply daily interest calculations. This calculator provides a simplified estimate for planning purposes.
- How should I interpret total interest?
Total interest represents the cost of borrowing money. A higher interest rate or longer term increases total interest paid over time.
- Is my data stored?
No. All calculations are performed locally in your browser. No data is stored or transmitted.