Loan Calculator
Free loan calculator to find monthly payments, total interest paid, and payoff date for personal, auto, or student loans. Works for all loan types.
Monthly Payment
$410.33
for 60 months
Loan Amount
$20,000.00
Total Interest
$4,619.84
Total Cost
$24,619.84
Interest %
18.8%
About the Loan Calculator
A loan calculator helps you understand exactly what you'll pay for any type of borrowing — personal loans, car loans, student loans, or business financing. Before signing any loan agreement, knowing your monthly payment, total interest cost, and payoff timeline gives you the power to compare lenders, negotiate better terms, and make confident borrowing decisions. Our free loan calculator works for loans of any size and term, from a $1,000 personal loan to a $500,000 business loan.
How It Works
All fixed-rate loans use the same amortization formula: Monthly Payment = Principal × [Rate × (1+Rate)^Months] / [(1+Rate)^Months - 1]. This formula distributes your loan repayment so that each monthly payment covers both the interest accrued that month and a portion of the principal balance. In the early months of any loan, most of your payment goes toward interest. As you pay down the principal, the interest portion shrinks and more of each payment reduces your balance — this is the amortization process.
Tips & Best Practices
- ✓Always compare APR, not just interest rate — APR includes fees and gives the true cost.
- ✓Making one extra payment per year on a 30-year loan cuts it down to about 26 years.
- ✓Biweekly payments (half your monthly payment every two weeks) make 26 half-payments = 13 full payments per year.
- ✓Prepayment penalties are common on some personal loans — check before overpaying.
- ✓A 1% improvement in your credit score can reduce your loan rate by 0.5–1.5%.
Who Uses This Calculator
This calculator is used by borrowers comparing multiple loan offers, financial advisors modeling debt repayment strategies, and anyone trying to understand how loan terms affect total cost. A $20,000 personal loan at 8% over 5 years costs $4,332 in interest. The same loan at 12% costs $6,680 — a $2,348 difference that makes it crystal clear why shopping for the best rate matters. Use this tool alongside our debt payoff calculator to create a complete debt elimination strategy.
Optimised for: USA · Canada · UK · Australia · Europe · Calculations run in your browser · No data stored
Frequently Asked Questions
How do I calculate loan payments?
Use the formula M = P[r(1+r)^n]/[(1+r)^n-1] where P=principal, r=monthly rate, n=months.
What is APR on a loan?
APR (Annual Percentage Rate) includes both interest rate and fees, giving the true cost of borrowing.