Loan Calculator
Calculate monthly payments, total interest, and amortization schedule.
Loan Summary
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
Loan Calculator Guide
Use this loan calculator to estimate a regular payment, total interest, and the overall repayment amount from the principal, interest rate, and loan term. It is useful for comparing borrowing scenarios before you review a lender's official offer.
What affects the payment?
A higher interest rate or longer repayment term changes the total cost. A longer term may reduce the monthly payment but can increase total interest. Enter the rate and term using the same frequency shown in the form.
Use the result as an estimate
Actual repayment schedules can include fees, taxes, insurance, variable rates, early-payment rules, or lender-specific rounding. Check the final agreement before making a financial decision.