Tinker Calc

Tools › Money

Loan Payment Calculator

Enter a loan amount, annual interest rate and term to see your fixed monthly payment, the total interest you'll pay and the full cost of the loan.

$
The amount you borrow, after any down payment
%
Nominal yearly rate (APR without fees)
years
Monthly payment–
Total interest–
Total of all payments–
Number of payments–

How to use the calculator

Type the amount you plan to borrow, the annual interest rate quoted by the lender and the length of the loan in years. The monthly payment updates instantly, along with the total interest and the total you will repay over the life of the loan.

Try changing the term: a longer term lowers the monthly payment but usually raises the total interest considerably.

The formula

Fixed-rate loans use the standard amortisation formula: payment = P × i ÷ (1 − (1 + i)^−n), where P is the loan amount, i is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments (years × 12).

If the rate is 0%, the payment is simply the loan amount divided by the number of months. Total paid is the payment times n, and total interest is total paid minus the amount borrowed.

Worked example

Borrow $20,000 at 6% for 5 years. The monthly rate is 0.06 ÷ 12 = 0.005 and there are 60 payments. (1.005)^−60 ≈ 0.7414, so the payment is 20,000 × 0.005 ÷ 0.2586 ≈ $386.66.

Over 60 months you pay about $23,199.36, of which $3,199.36 is interest.

Practical tips

Results are estimates: real loans may add origination fees, insurance or taxes, and lenders round payments slightly differently. Compare offers using the APR, which includes fees.

Extra payments toward principal shorten the loan and cut interest, so check that your lender allows them without penalty.

Frequently asked questions

Does this work for mortgages and car loans?

Yes, for any fixed-rate loan with equal monthly payments. For mortgages, property tax and insurance held in escrow are not included.

Why is so much of my early payment interest?

Interest is charged on the remaining balance, which is largest at the start. As the balance falls, more of each payment goes to principal.

What is the difference between interest rate and APR?

The interest rate is the cost of borrowing the principal; APR also spreads lender fees over the term, so it is usually a bit higher.

Is a shorter loan term always better?

It saves interest but raises the monthly payment. Choose a payment you can comfortably afford.