Loan Calculator
Payment, total cost and interest for any fixed-rate loan.
- Number of payments
- 60
- Total paid
- $30,056.92
- Total interest
- $5,056.92
How this calculator works
The calculator spreads the loan into equal monthly payments. Each payment covers that month's interest first, and the rest reduces the balance.
Formula
Payment = P × r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
Example
Borrowing $25,000 at 7.5% for 5 years costs about $501 a month and roughly $5,057 in interest.
When to use it
- Check whether a loan fits your monthly budget
- Compare offers with different rates or terms
- Estimate total borrowing cost before you sign
Frequently asked questions
Is a shorter loan term better?
A shorter term raises the monthly payment but cuts total interest, often by a lot. Choose the shortest term whose payment still fits comfortably in your budget.
Should I enter the interest rate or the APR?
Enter the interest rate to get an accurate payment. APR includes fees and is better for comparing offers; the APR calculator shows the difference.
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