Loan Calculator

Find the monthly payment and true total cost of a loan.

Disclaimer: This calculator gives estimates only and is not financial, tax, or legal advice. Figures can differ from lender, employer, or official calculations. Please confirm important decisions with a qualified professional. See our full disclaimer.

The loan payment formula

Loans use the same amortisation formula as mortgages: M = P × r(1+r)n / ((1+r)n − 1), with P the amount borrowed, r the monthly rate and n the number of monthly payments.

Worked example

Borrowing $20,000 at 8% over 60 months gives a monthly payment of about $405.53, total payments of about $24,331.67 and total interest of about $4,331.67.

How to use this calculator

  1. Enter how much you plan to borrow.
  2. Add the annual interest rate.
  3. Enter the term in months, then select Calculate.

Related calculators

Paycheck Calculator

Estimate US take-home pay after federal, Social Security, Medicare and state tax.

Frequently asked questions

How is loan interest calculated?

Interest is charged monthly on the remaining balance, so you pay more interest early in the loan and more principal later — this is called amortisation.

Does a longer term cost more?

Usually yes. A longer term lowers the monthly payment but normally increases total interest paid.