About this tool
The Loan Calculator estimates your fixed monthly payment for any loan using the standard amortization formula. Enter the loan amount, annual interest rate and term in years to see the monthly payment, the total interest you will pay, and the total cost of the loan. It is ideal for car loans, personal loans and mortgages.
How to use
- 1Enter the loan amount.
- 2Enter the annual interest rate and term.
- 3Read your monthly payment and total cost.
Benefits
- Accurate amortization formula.
- Shows total interest and total cost.
- Works for any currency.
Read the loan estimate carefully
Practical example
The monthly payment is calculated from principal, interest rate and term. A longer term can reduce the payment while increasing the total interest paid over the life of the loan.
Interpreting the result
Compare both the monthly payment and total cost. Test a higher interest rate and a shorter term to understand whether your budget can handle changing offers.
Limits and common mistakes
The estimate may exclude fees, insurance, taxes, variable-rate changes and lender-specific rounding. It is educational, not a credit offer or financial advice.
Detailed guides for this tool
Learn the underlying concepts, worked examples and common mistakes before relying on the result.
Frequently asked questions
Is this exact for my bank?+
It uses the standard formula; your bank may add fees, so treat the result as a close estimate.
What is amortization?+
It is the way each payment is split between interest and principal over the life of the loan.