Loan Calculator
Estimate equal installments on an amortizing loan, plus total interest, from the amount borrowed, annual rate, and length in years.
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About this calculator
This calculator uses the standard amortization formula for a fixed interest rate and equal monthly payments. It is suitable for personal loans, auto loans, and a first look at mortgage payments before taxes and insurance.
Limits
- Equal monthly installments only. Extra payments, fees, and variable rates are not modeled.
- The annual rate is divided by 12. It is not an APR that already includes lender fees.
- This is not a lender quote or a credit decision.
How to calculate
Enter the loan amount, annual interest rate, and term in years. The result is the monthly payment, plus total interest and total amount repaid over the life of the loan.
r = annual rate / 12
n = years × 12
M = P × r(1 + r)ⁿ / ((1 + r)ⁿ − 1)
When to use it
- Comparing a 3-year vs 5-year personal loan
- Checking a quoted monthly payment against the standard formula
Examples
A $10,000 loan at 6% for 5 years
Monthly rate is 0.5%. The payment is about $193.33, with roughly $1,599.80 in total interest.
Monthly payment on $10,000 at 6% (principal and interest)
| Term | Payment | Total interest |
|---|---|---|
| 3 years | $304.22 | $951.90 |
| 5 years | $193.33 | $1,599.68 |
| 7 years | $146.02 | $2,265.85 |
FAQ
Does this include taxes or insurance?
No. The payment is principal and interest only. Mortgage escrow items such as tax and insurance are extra.
What happens if the interest rate is zero?
The payment is simply the principal divided by the number of months.