Loan Calculator
Estimate monthly payments, total interest, and total cost of an amortizing loan.
Enter the loan principal, the annual interest rate as a percentage, and the repayment term in years. The calculator applies the standard amortization formula to compute your fixed monthly payment.
The result shows three key numbers: the monthly payment, the total amount paid over the life of the loan, and the total interest cost. If the interest rate is zero, the calculator divides the principal evenly across the payments.
This tool gives an estimate for fixed-rate installment loans. Actual lender quotes may include fees, insurance, taxes, or variable rates that are not modeled here.
Frequently asked questions
What formula does this calculator use?
It uses the standard amortization formula: monthly payment equals principal times monthly rate times one plus monthly rate raised to the number of payments, divided by one plus monthly rate raised to the number of payments minus one.
What happens if I enter 0% interest?
At 0% interest, the monthly payment is simply the loan principal divided by the total number of monthly payments, so no interest accrues.
Does this include taxes or insurance?
No. This calculator models principal and interest only. Mortgage escrow, taxes, insurance, and lender fees should be added separately if applicable.