Loan Calculator - Estimate Your Monthly Payments

What Is a Loan Calculator?

• Your monthly payment is based on the loan amount, interest rate, and term.
• Total interest paid over the life of the loan.
• How much goes toward principal vs. interest each month.
• Remaining loan balance after each payment.

How Does a Loan Calculator Work?

Our calculator uses the annuity formula, which calculates equal monthly payments over the term of the loan:

P = A × r(1 + r)n / (1 + r)n - 1

• P – Monthly Payment
• A – Loan Amount (Principal)
• r – Monthly Interest Rate (Annual Rate / 12)
• n – Total Number of Payments (Loan Term in Years × 12)

Did you know? Inflation can impact the real cost of your loan repayments over time. Use our Inflation Calculator to see how purchasing power changes.

Why Use a Loan Calculator?

• Understand Your Monthly Payments: Easily compare different interest rates and loan terms.
• See the Total Loan Cost: Understand how interest impacts the total amount paid.
• Compare Loan Options: Evaluate different lenders and offers to find the best deal.

How to Use the Loan Calculator?

1. Enter the Loan Amount – The total amount you plan to borrow.
2. Enter the Interest Rate (%) – The annual interest rate on the loan.
3. Enter the Loan Term (Years) – The number of years you will take to repay the loan.
4. Click "Calculate" – The tool will instantly display your monthly payment, total interest paid, and loan breakdown.

Common Loan Scenarios

🏠 Mortgage Loan

Mortgages typically last 15 to 30 years. Even a small difference in interest rates can save thousands of dollars.

🚗 Auto Loan

Car loans usually last 3 to 7 years. A shorter loan term means higher monthly payments but less interest paid overall.

🎓 Student Loans

Student loans often have longer repayment terms (10–30 years) and lower interest rates. The Loan Calculator helps compare federal vs. private loans.

Frequently Asked Questions (FAQ)

What is the best loan term?

Shorter terms mean higher monthly payments but lower total interest. Longer terms reduce monthly payments but increase overall loan costs.

Can I make extra payments to pay off my loan faster?

Yes! Making extra payments toward principal can significantly reduce the loan term and total interest paid.

What is the difference between fixed and variable interest rates?

Fixed rates stay the same over the loan term, while variable rates fluctuate with market conditions.

How does my credit score affect my loan?

Higher credit scores qualify for lower interest rates, reducing total loan costs.

How does the Loan Calculator work?

Our Loan Calculator helps you estimate your monthly payments, total interest paid, and the overall cost of your loan based on the loan amount, interest rate, and term.

What types of loans can I calculate?

You can calculate various types of loans, including mortgages, car loans, personal loans, and student loans.

Can I see a breakdown of my loan payments?

Yes! The calculator provides a full amortization schedule, including a breakdown of monthly principal and interest payments.

Conclusion

A Loan Calculator is an essential tool for anyone planning to borrow money. It helps you compare loan options, plan monthly payments, and understand the total cost of borrowing.