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ToolPika

Loan Calculator

Enter the amount, interest rate and term to see your monthly payment, the total interest and how the balance goes down year by year.

Monthly payment

396.02
Total interest
3,761.44
Total paid
23,761.44
Paid off in
5 years
Amortization schedule (by year)
YearInterestPrincipalBalance
11,290.333,461.9616,538.04
21,040.063,712.2212,825.82
3771.713,980.588,845.23
4483.954,268.344,576.90
5175.394,576.900

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How it works

Each month, interest is charged on what you still owe: the balance times the yearly rate divided by 12. Your payment first covers that interest, and the rest reduces the balance. Because the balance keeps falling, the interest part shrinks and the principal part grows, even though the payment stays the same.

The amortization schedule shows this year by year: how much of what you paid went to interest, how much went to the principal, and what is left at the end of each year. You can download it as a CSV file to open in a spreadsheet.

A 0% loan is simply the amount divided by the number of months.

Examples

Loan Monthly payment Total interest
20,000 at 7% over 5 years 396.02 3,761.44
30,000 car loan at 6.5% over 6 years 504.30 6,309.45
5,000 personal loan at 12% over 2 years 235.37 648.82

Amounts are shown without a currency symbol, so the calculator works with any currency. Results are rounded to the cent only for display.

Things to keep in mind

  • Fees (arrangement fees, insurance) are not included. Add them to the amount if they are financed, or compare offers by APR.
  • Variable rates change the payment over time; this calculator assumes the rate stays fixed.
  • Early repayment charges may apply to extra payments on some loans. Check your contract.

Frequently asked questions

How is the monthly payment calculated?

With the standard annuity formula, payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r the monthly interest rate (the yearly rate divided by 12) and n the number of monthly payments. Every payment is the same, but the share going to interest falls over time.

Which interest rate should I enter?

The nominal yearly rate on your loan offer. The APR also includes fees, so it is usually a little higher; using the APR gives a slightly higher, more conservative payment.

How do extra payments help?

Extra money goes straight to the balance, so less interest is charged every month after it. A regular extra payment shortens the loan and the calculator shows how much interest you save.

Does it work for car loans and personal loans?

Yes. Any loan repaid in equal monthly payments at a fixed rate works the same way. For a home loan with a down payment, the mortgage calculator is more convenient.

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