Finance Calculators
Loan Calculator
Estimate your monthly loan payments, total interest, and total repayment amount. Adjust the loan amount, term, and interest rate to see how they affect your costs.
Formula Used
Monthly Payment = P Γ [r(1+r)^n] Γ· [(1+r)^n β 1], where P = principal, r = monthly rate, n = number of payments.
About This Calculator
What It Does
Estimate your monthly loan payment, total interest, and total repayment amount. Adjust the loan amount, term in years, and annual interest rate to see how each factor affects your costs. The calculator uses the standard amortization formula: it assumes equal monthly payments over the full term, with each payment covering accrued interest plus some principal. Early payments are interest-heavy; later payments are principal-heavy. This tool does not account for origination fees, prepayment penalties, insurance, or taxes. Use it as a starting point to compare loan offers, not as a final approval figure.
Worked Example
Example 1 β Standard loan: A 10,000 unit loan over 5 years at 5% annual interest. Monthly payment β 188.71 units. Over 60 payments, total repayment β 11,322.60 units, meaning 1,322.60 units in total interest. Example 2 β Shorter term comparison: Same 10,000 unit loan at 5% but over 3 years instead of 5. Monthly payment β 299.71 units (higher), total repayment β 10,789.56 units, total interest β 789.56 units. By paying 111 more per month, you save 533.04 in total interest. Example 3 β Extra payment impact: A 10,000 unit loan at 5% over 5 years, but you pay 50 extra per month (238.71 total). Payoff time drops from 60 to about 48 months. Total interest drops to approximately 1,047 units β saving 275 units by paying just 50 extra per month.
Real-World Usage
Use this calculator before taking on any major debt. Compare loan offers from different lenders side by side. Understand how extending your loan term lowers monthly payments but increases total interest. See the real cost of minimum payments on large purchases. Evaluate whether leasing vs buying makes sense for a car by comparing loan payments. Use it to plan large purchases: a shorter term saves on interest but requires higher monthly cash flow. Also useful for refinancing decisions β compare your current loan terms against a new offer to see potential savings.
Local Context
US lenders must disclose the APR under TILA (Truth in Lending Act). Personal loan rates typically range from 6% to 36% depending on your FICO score (300β850 range). The average personal loan in the US is around $10,000β$15,000 over 3β5 years. Credit scores above 740 qualify for the best rates. Loan origination fees (1β5%) are common but must be disclosed upfront. Compare offers from banks, credit unions, and online lenders β rates can vary significantly.
Last reviewed: May 2026.
This is an estimate only and does not constitute a loan offer or commitment. Actual rates, terms, and payments may vary based on lender, credit score, and other factors.
Frequently Asked Questions
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus any fees or additional costs, giving a truer picture of the total loan cost.
How does the loan term affect my payment?
A longer term reduces your monthly payment but increases the total interest you pay. A shorter term costs more per month but saves you money overall.
What is amortization?
Amortization is the process of paying off a loan with fixed, regular payments. Early payments go mostly toward interest, while later payments go mostly toward the principal balance.