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Loan Calculator

Work out the monthly payment on any fixed-rate loan, see how much of it goes to interest, and find out what extra payments save. Amounts are shown in your currency.

$
% a year

The yearly rate on your offer

Monthly payment
$405.53
Total interest
$4,332
Total repaid
$24,332
Paid off
in 5 years
Extra payments
$
$

Month 1 to 60

    Where your payments go: $24,332

    • Loan repaid: $20,000
    • Interest: $4,332
    Amortization schedule
    By loan year. Tap a year to see each payment.
    YearPrincipalInterestBalance
    $3,389$1,478$16,611
    $3,670$1,196$12,941
    $3,975$892$8,966
    $4,305$562$4,662
    $4,662$204$0

    An estimate for a fixed rate. Your lender's figures can differ slightly, for example if interest is charged daily or the first period is longer. Not financial advice.

    How to use the loan calculator

    1. Check the currency (it follows your device's region) and enter the amount you want to borrow.
    2. Enter the yearly interest rate from your loan offer and the term in years or months.
    3. Read the monthly payment, total interest and payoff date. Add extra payments to see how much sooner you'd be done.
    4. Open the amortization schedule to see the balance fall year by year, or tap a year for each payment.

    Loan payment formula

    M = P × i ÷ (1 − (1 + i)−n)

    P is the amount borrowed, i the rate per payment (the yearly rate ÷ 12) and n the number of payments. Each payment first pays the interest on what you still owe; the rest reduces the balance. That's why the balance falls slowly at first and faster towards the end.

    Worked example

    Borrow $20,000 at 8% a year for 5 years. The monthly rate is 0.08 ÷ 12 = 0.6667% and there are 60 payments, so the payment is $405.53. The first month's interest is $20,000 × 0.6667% = $133.33, so $272.19 of the first payment repays the loan and $19,727.81 is left. Over the 5 years you pay $24,331.67: the $20,000 back plus $4,331.67 interest.

    Which loan calculator?

    Frequently asked questions

    How is a loan payment calculated?

    With the formula M = P × i ÷ (1 − (1 + i)^−n), where P is the amount borrowed, i the interest rate per month (the yearly rate ÷ 12) and n the number of monthly payments. For $20,000 at 8% over 5 years, i = 0.08 ÷ 12 and n = 60, so the payment is $405.53 a month and the interest over the loan is $4,331.67.

    What is an amortization schedule?

    A table of every payment showing how much goes to interest, how much repays the loan and what you still owe afterwards. Interest is charged on the balance, so early payments are mostly interest: on the example loan the first payment is $133.33 interest and $272.19 principal, and the last is $2.69 interest. Open the schedule under the calculator and tap a year to see each payment.

    How much does paying extra save?

    Extra money goes straight to the balance, so you stop paying interest on it. Adding $100 a month to the $20,000, 8%, 5-year loan clears it 1 year 1 month sooner and saves $1,036 in interest. Some lenders charge for early repayment, so check your agreement first.

    Is the interest rate the same as the APR?

    Not always. The APR (annual percentage rate) also counts fees such as an origination or processing fee, so it's higher than the interest rate when there are fees. This calculator uses the interest rate. To see the APR with a fee, use the personal loan or business loan calculator.

    Does a longer loan term cost more?

    Yes. A longer term lowers the monthly payment but you pay interest for longer. $20,000 at 8% costs $405.53 a month over 5 years ($4,332 interest) or $311.72 a month over 7 years ($6,185 interest).

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