Loan Calculator
Calculate monthly payments, total interest, and amortization schedule.
$10,000
$
5.0%
%
5 years
Loan Summary
Monthly Payment
$188.71
Total Interest
$1,322.74
Total Payment
$11,322.74
Interest Rate
5.0%
Loan Term
5 years
Amortization Schedule
| Year | Principal | Interest | Balance |
|---|
Enter a value to see the conversion result
Payment Breakdown
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Understanding Loan Calculations
Loan calculators use amortization formulas to determine monthly payments, total interest, and payment schedules. Understanding these calculations helps you make informed borrowing decisions and compare loan offers effectively.
| Unit Type | Unit Name | Value in Monthly Payment (Principal + Interest) |
|---|---|---|
| Loan Type | Personal Loan | Typical APR: 6-36%, Term: 1-7 years |
| Loan Type | Student Loan | Federal: 4-8%, Private: 3-14% |
| Loan Type | Auto Loan | New: 4-7%, Used: 6-10%, Term: 3-7 years |
| Loan Type | Home Equity | Typical APR: 6-12%, Term: 5-30 years |
| Loan Type | Business Loan | Typical APR: 5-30%, Term: 1-25 years |
| Payment Component | Principal | Original borrowed amount |
| Payment Component | Interest | Cost of borrowing money |
| Payment Component | Total Payment | Principal + Total Interest |
| Term Length | Short-term (1-3 years) | Higher payments, less interest |
| Term Length | Medium-term (3-7 years) | Balanced approach |
| Term Length | Long-term (7+ years) | Lower payments, more interest |
| Factor | Credit Score Impact | 720+: Best rates, <580: Higher rates |
| Factor | Loan-to-Value (LTV) | Lower LTV = better interest rates |
Conversion Tip
A loan calculator helps you determine monthly payments, total interest, and repayment schedules. The calculation uses the principal amount, interest rate, and loan term to compute accurate payment breakdowns using standard amortization formulas.
Quick Reference
- Monthly Payment = P × [r(1+r)^n] / [(1+r)^n-1]
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (months)
- Total Interest = (Monthly Payment × n) - Principal
- APR includes fees and other costs of credit
- Fixed-rate loans have constant monthly payments
- Variable-rate loans can change over time
- Shorter loan terms = higher payments, less interest
- Longer loan terms = lower payments, more interest
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