Loan Calculator

Find the monthly payment and total cost of any fixed-rate loan: personal, student, business or anything else.

By the CalculateBright team · Updated · How we calculate

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    How to use the Loan calculator

    1. Enter your numbers. Fill in loan amount, interest rate, term, term unit.
    2. Read your results. Results update instantly. The headline shows the monthly payment; the breakdown and table below show the details.

    How this loan calculator works

    Enter how much you’re borrowing, the annual interest rate (APR) and the term. The calculator uses the standard amortization formula lenders use for fixed-rate installment loans to find a level monthly payment that pays the loan off exactly on schedule.

    The formula

    M = P × r(1 + r)n ÷ [(1 + r)n − 1]

    where M is the monthly payment, P the amount borrowed, r the monthly interest rate (APR ÷ 12) and n the number of monthly payments. Each month, interest is charged on the remaining balance and the rest of the payment reduces principal, so early payments are mostly interest and later payments are mostly principal.

    What affects your payment

    • Rate: on a 5-year $20,000 loan, going from 8% to 10% raises the payment by about $19/month and total interest by about $1,165.
    • Term: longer terms lower the payment but increase total interest.
    • Fees: origination fees aren’t part of the payment but raise your true cost. Use the personal loan calculator to include them.

    Worked example

    With these inputs: loan amount$20,000; interest rate (apr)8%; term5; term unitYears.

    The calculator gives a monthly payment of $405.53. Other results: number of payments60, total interest$4,332, total cost$24,332, payoff dateOct 2031.

    What your results mean

    The monthly payment is what you owe each month to repay the loan on schedule. Total interest is the extra cost of borrowing over the full term. Comparing it with the amount borrowed shows how expensive the loan really is.

    Tips

    • Compare offers by APR and total interest, not monthly payment alone.
    • Choose the shortest term whose payment fits comfortably in your budget.
    • Ask whether the lender charges prepayment penalties before you sign.

    Frequently asked questions

    How is a monthly loan payment calculated?

    Lenders use the amortization formula M = P × r(1 + r)n ÷ [(1 + r)n − 1], where r is the monthly rate and n the number of payments. The calculator applies exactly that formula.

    How much is a $10,000 loan per month?

    At 8% APR, about $313 a month over 3 years or $203 over 5 years. Enter your own rate and term above for an exact figure.

    What is the difference between interest rate and APR?

    The interest rate is the cost of borrowing the principal. APR also folds in certain fees, so it’s the better number for comparing offers.

    Can I pay off a loan early?

    Most consumer loans allow it. Check for prepayment penalties. Extra payments go to principal and cut total interest.

    Does this work for interest-only loans?

    No. This calculator assumes a fully amortizing, fixed-rate loan with equal monthly payments.

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