💰 Finance
Loan Calculator
Use this free loan calculator to get fast, accurate results.
📝 Your Assumptions
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This loan calculator gives you the exact monthly payment, total interest, and total amount paid for any fixed-rate loan. Enter your loan amount, interest rate, and term in years to see the true cost of borrowing before you sign. It works for mortgages, auto loans, personal loans, and student loans up to 30 years.
How to Use This Calculator
Enter three numbers and the calculator instantly returns your monthly payment and total cost.
1
Enter Your Loan Amount
Type the amount you plan to borrow, such as $25,000 for a new car or $350,000 for a home. Use the full purchase price minus any down payment. For a $400,000 house with 20% down, enter $320,000.
2
Input the Interest Rate
Enter the annual percentage rate (APR) your lender quoted, like 6.5 for a mortgage or 7.2 for a used-car loan. Do not enter the monthly rate; the calculator divides by 12 automatically. A 0.5% difference on a $300,000 loan changes your payment by about $100 per month.
3
Choose Your Loan Term
Select the number of years from the dropdown, typically 3, 5, 15, or 30. A 30-year term lowers the monthly payment but increases total interest compared to a 15-year term. Shorter terms build equity faster and cost less overall.
4
Review the Monthly Payment
The top result shows your principal and interest payment, such as $2,022 for a $320,000 loan at 6.5% over 30 years. This figure excludes property taxes, homeowners insurance, and PMI. Add those separately for your full housing cost.
5
Check Total Interest and Total Paid
The bottom two results reveal the true cost: a $320,000 loan at 6.5% for 30 years costs about $408,000 in interest, for a total of $728,000. Compare that to a 15-year term at 5.8%, where total interest drops to roughly $160,000.
What Your Results Mean
Each output tells you a different part of the loan's cost structure.
Monthly Payment
This is the fixed amount you pay every month for the life of the loan, covering both principal and interest. On a $25,000 auto loan at 7% for 5 years, it's $495. It does not include taxes, insurance, or fees.
Total Interest
This is the cumulative cost of borrowing over the full term. A $10,000 personal loan at 12% for 3 years costs about $1,950 in interest. The longer the term, the more interest you pay, even if the monthly payment is lower.
Total Paid
This is the sum of your loan amount plus all interest. For a $200,000 mortgage at 6% for 30 years, you pay about $431,000 total — more than double the amount borrowed. It shows the real price of the loan.
Amortization
Early payments go mostly to interest; later payments go mostly to principal. On a $300,000 mortgage at 6.5%, the first payment sends $1,625 to interest and only $271 to principal. By year 20, the split reverses.
Interest Rate Impact
A small rate change has a large effect over time. On a $250,000 30-year loan, 6% costs $289,000 in interest, while 7% costs $348,000 — a $59,000 difference. Even 0.25% matters over decades.
Loan Term Trade-off
Shorter terms mean higher monthly payments but far less interest. A $20,000 car loan at 6% costs $3,200 in interest over 5 years but only $1,900 over 3 years. Choose the shortest term you can comfortably afford.
Key Terms
Principal
The original amount of money you borrow, separate from interest. On a $15,000 loan, the principal is $15,000.
Interest Rate
The annual percentage a lender charges you to borrow money. A 5% rate on $10,000 costs $500 in interest over one year if no principal is paid.
APR
Annual Percentage Rate, which includes the interest rate plus lender fees. It gives a more complete cost of borrowing than the interest rate alone.
Amortization
The process of paying off a loan through scheduled payments over time. Each payment covers interest first, then reduces the principal.
Loan Term
The length of time you have to repay the loan, usually measured in months or years. A 60-month term equals 5 years.
❓ Frequently Asked Questions
The monthly payment uses the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n – 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments. For a $300,000 mortgage at 6% for 30 years, r = 0.005 and n = 360. Plugging in: M = 300,000 × [0.005(1.005)^360] / [(1.005)^360 – 1] = $1,798.65. That payment stays fixed, but the split between interest and principal shifts each month. In month one, $1,500 goes to interest and $298.65 to principal. By month 360, nearly all of it goes to principal. If you want to see how extra payments change the schedule, try the mortgage calculator for a full amortization table.
A 15-year term saves tens of thousands in interest but raises the monthly payment. On a $300,000 loan at 6%, a 30-year term costs $1,798 per month and $347,515 in total interest. A 15-year term at 5.5% costs $2,451 per month but only $141,200 in interest — a savings of $206,315. The trade-off is $653 more per month. If you can afford the higher payment, the 15-year term builds equity faster and pays off the loan by the time many people retire. If cash flow is tight, the 30-year term offers flexibility, and you can always make extra principal payments later. Run both scenarios through the mortgage calculator to see the exact difference for your loan amount.
A 1% difference is expensive over a long term. On a $250,000 30-year mortgage, 6% costs $289,595 in total interest, while 7% costs $348,772 — a difference of $59,177. That's roughly the price of a new car. The monthly payment jumps from $1,499 to $1,663, or $164 more per month. On a shorter loan, the gap is smaller but still real: a $25,000 5-year auto loan at 6% costs $3,999 in interest, while at 7% it costs $4,697 — $698 more. Even a 0.25% difference on a large loan adds up. On $400,000 at 6.25% versus 6.5% over 30 years, you pay about $22,000 more in interest. Always compare at least three lenders and negotiate; the rate matters more than the fees for most borrowers.
Amortization front-loads interest because interest is charged on the remaining balance, which is highest at the start. On a $200,000 loan at 6% for 30 years, the monthly payment is $1,199. The first payment sends $1,000 to interest and only $199 to principal. After 5 years, the balance is still about $186,000 — you've paid $71,940 but reduced the principal by just $14,000. By year 15, the split is nearly even: about $600 interest and $599 principal. This is why extra payments early in the loan have an outsized effect. An extra $100 per month on that loan saves over $40,000 in interest and cuts about 4 years off the term. Use the mortgage calculator to see how extra payments change your payoff date.
No. This loan calculator shows principal and interest only, which is the core of any fixed-rate loan. For a mortgage, you must add property taxes, homeowners insurance, and possibly PMI. On a $350,000 home in a state with 1.2% property tax, that's $4,200 per year, or $350 per month. Homeowners insurance averages $1,500 per year, or $125 per month. If your down payment is under 20%, PMI adds roughly 0.5% to 1% of the loan amount annually — about $146 to $292 per month on a $350,000 loan. So a $2,022 principal-and-interest payment could become $2,643 or more. For auto loans, add sales tax, registration, and dealer fees. The auto loan calculator can help you estimate the full monthly cost including those extras.
Most US loans have no prepayment penalty, so you can pay extra anytime. On a $30,000 auto loan at 6% for 5 years, the payment is $580. Add $100 per month and you pay it off in about 4 years and 2 months, saving roughly $1,000 in interest. On a $250,000 mortgage at 6.5% for 30 years, the payment is $1,580. Adding $200 per month cuts the term to about 24 years and saves over $80,000 in interest. Before paying extra, check two things: whether the loan has a prepayment penalty (rare but possible) and whether you have higher-interest debt to pay first. A credit card at 22% costs far more than a 6% mortgage, so pay that down first. Once high-interest debt is gone, directing extra money to your loan is one of the safest returns you can get. The personal loan calculator can show you the impact of extra payments on smaller loans.
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