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For fixed-rate loans: car, personal, student. Works with any currency.
Loan Payment Calculator
Enter the loan amount, the annual interest rate and the term in years. You get the fixed monthly payment, the total you will pay over the life of the loan, and how much of that total is interest.
-Monthly payment
-Total paid
-Total interest
The amortization formula
For a fixed-rate loan the monthly payment M is: M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments (years × 12). With a zero rate, the payment is simply P ÷ n.
Worked example
Borrow 20,000 at 6% annual interest for 5 years:
- Monthly rate r = 6 ÷ 12 ÷ 100 = 0.005; number of payments n = 5 × 12 = 60.
- Monthly payment M ≈ 386.66.
- Total paid = 386.66 × 60 ≈ 23,199.60.
- Total interest = 23,199.60 − 20,000 ≈ 3,199.60.
Why early payments are mostly interest
Each month the lender charges interest on the remaining balance, and the rest of your payment reduces the principal. Early on the balance is large, so most of each payment is interest. As the balance shrinks, a growing share of every payment goes toward principal. That is why extra payments early in the loan cut the total interest the most.
Fixed vs variable rates
This calculator assumes a fixed rate that never changes. With a variable-rate loan the monthly payment can rise or fall when the rate resets, so treat the result as a snapshot of the current rate, not a promise for the whole term.
Planning estimate only. Results use the list prices shown and may differ from your actual bill. Terms
Frequently asked questions
How is the monthly loan payment calculated?
With the amortization formula: the lender's monthly rate and the number of payments determine a fixed payment that pays off the loan exactly, interest included, by the last month. The calculator above does the math.
How can I pay less interest on a loan?
Three levers: borrow less, take a shorter term, or get a lower rate. A shorter term usually saves the most interest, though the monthly payment is higher.
Does making extra payments help?
Yes. Extra payments reduce the principal directly, so future interest is charged on a smaller balance. Making one extra payment a year, or rounding the monthly payment up, can shave months off a loan.
What is the difference between APR and the interest rate?
The interest rate is the cost of borrowing the principal. The APR (annual percentage rate) also folds in fees and other charges, so it is the better number for comparing loan offers. This calculator uses the interest rate alone.
Why is my early statement mostly interest?
Interest is charged on the outstanding balance each month. When the balance is high at the start, interest takes the biggest share of each fixed payment. The principal share grows as the balance falls.