How to use Loan Calculator
- Enter the loan amount, the annual interest rate and the term.
- Read the monthly payment, total interest and total repaid.
- Check the yearly table to see how the balance falls.
About this tool
Fixed-rate loans are repaid with equal monthly payments. Early payments are mostly interest and later payments mostly principal, which is why the balance falls slowly at first. The payment uses the standard annuity formula with monthly compounding.
Results are estimates for planning and education, not financial advice. Real offers can include fees, rounding and rules that are not modelled here.
Frequently Asked Questions
- How is the monthly payment calculated?
- payment = P x r / (1 - (1 + r)^-n), where P is the amount, r the monthly rate (annual rate / 12) and n the number of monthly payments.
- How can I pay less interest?
- A shorter term or a lower rate reduces total interest. Extra payments toward principal also shorten the loan if your lender allows them without penalty.
- Does it include fees?
- No. Origination fees, insurance and other charges are not included.
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