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Loan Calculator

Simulate loan payments, interest rates, and payoff schedules.

* Assumes monthly compounding.

Monthly Payment

$0.00
Total Interest
$0.00
Total Cost
$0.00

Loan Calculator: Estimate Payments & Total Interest

Taking out a loan is one of the most significant financial decisions you can make. Whether you are financing a new car, consolidating credit card debt, or taking out a personal loan for home improvements, understanding exactly how much you will pay each month—and how much interest you will accrue over time—is critical to maintaining a healthy budget.

Our free online Loan Calculator empowers you to simulate various loan scenarios instantly. By adjusting the principal amount, interest rate, and term length, you can find the perfect balance between an affordable monthly payment and minimizing long-term interest costs.

How to Use the Loan Calculator

Simulating your amortization schedule is incredibly fast. Just input these three numbers:

  • Step 1: Enter the Loan Amount. This is the "principal," or the total amount of money you are borrowing from the lender.
  • Step 2: Enter the Interest Rate. Input the Annual Percentage Rate (APR) offered by your bank or dealership.
  • Step 3: Enter the Loan Term. Input the total length of the loan in years. (For example, for a 60-month auto loan, enter "5").

Understanding Your Results

As soon as you enter your data, the calculator updates in real-time to provide three crucial figures:

  • Monthly Payment: The exact amount you will need to pay every month to satisfy the loan within the specified term. This assumes standard monthly compounding.
  • Total Interest: This is the "cost of borrowing." It is the total amount of money the bank will make off your loan by the time you pay it off.
  • Total Cost: The sum of your original principal plus the total interest paid.

Pro Tips for Borrowers

  • Shorten the Term: Extending a loan term lowers your monthly payment, but drastically increases the total interest paid. Play with the calculator to see if you can afford a 3-year term instead of a 5-year term.
  • Shop Around: Even a 1% difference in interest rates can save you thousands of dollars over the life of a loan. Always get multiple quotes before signing.

Frequently Asked Questions (FAQs)

What is an Amortization Schedule?
An amortization schedule is a table detailing each periodic payment on an amortizing loan. Early in the loan, a larger portion of your payment goes toward interest. Toward the end of the loan, the majority goes toward paying down the principal.
Does this calculator include fees or taxes?
No. This calculator provides the pure mathematical calculation of Principal and Interest. It does not account for origination fees, dealership fees, sales tax, or early payoff penalties.
Can I use this for a mortgage?
While the core math is the same, we highly recommend using our dedicated Mortgage Calculator for home loans, as it allows you to factor in down payments, property taxes, and homeowners insurance.

Simulate Your Loan Now

Don't let interest rates catch you by surprise. Scroll up to calculate your exact monthly payments instantly.