Calculate payments, total interest and payoff time for any amortizing loan.
This uses the standard amortization formula to spread principal and interest evenly across every payment so the loan reaches a zero balance at the end of the term.
M = P · r / (1 − (1+r)^−n)
Four inputs, and only four: the amount borrowed, the interest rate, the term, and the payment frequency. Everything a lender adds beyond that — fees, insurance, add-ons — sits on top rather than changing the underlying arithmetic.
The payment is set so the loan reaches exactly zero at the end of the term. Early payments are mostly interest; later ones are mostly principal. That shift is the defining behaviour of an amortising loan.
The interest rate covers interest only. APR folds in mandatory fees and gives a figure you can compare across lenders. A 5.9% rate with a large arrangement fee can easily cost more than a 6.3% rate with none.
Two APRs are only comparable when the terms match. A 3-year loan at 7% and a 5-year loan at 7% have the same rate and very different total costs — the longer loan costs substantially more interest for a lower monthly payment.
Extending a term always reduces the monthly payment and always increases total interest. Both halves of that sentence are true simultaneously, and lenders advertise the first half.
If a longer term is the only way to make a payment affordable, that is useful information about the size of the purchase, not just about the loan.
Any payment above the scheduled amount comes off the principal directly, and therefore removes all future interest that principal would have generated. Two things to check first:
held as a credit against future payments — the two have very different effects.
Secured loans are backed by an asset and carry lower rates because the lender's risk is lower. The asset can be taken if you default. Unsecured loans cost more and put no specific asset at risk, though default still has serious consequences.
For mortgages specifically, use the mortgage calculator, which handles tax, insurance and PMI as separate components.
Estimates for informational purposes only and not financial advice. Actual loan terms may vary by lender.
This uses your nominal annual interest rate. APR also includes certain fees, so your real cost of borrowing may be slightly higher than shown here.
Yes — any fixed-rate, fully-amortizing loan such as personal loans, student loans, or business loans works with this calculator.