🏦 Free Loan Calculator
Estimate your monthly payments, total interest, and total cost for any loan. Add extra payments to see how much you can save.
What is this tool?
Our free loan calculator helps you estimate monthly payments, total interest, and total cost for any loan. Whether you're shopping for a personal loan, auto loan, or consolidating debt, this monthly payment calculator gives you clear numbers to make informed decisions. Enter the loan amount, interest rate, and term to see your full amortization picture - including the impact of extra payments.
How it works
This loan payment calculator uses the standard amortization formula. Your monthly payment is calculated so that each payment covers the interest due plus some principal, gradually paying down the loan over the term. Extra payments go directly to principal, reducing total interest and shortening the loan term.
Where P = loan amount, r = monthly interest rate (annual rate / 12), and n = total months.
How to use
- Enter loan amount - The total you plan to borrow.
- Enter interest rate - Your annual percentage rate (APR).
- Enter loan term - The repayment period in years.
- Add extra payments (optional) - See how much extra monthly payments save you.
- Click Calculate - View monthly payment, total interest, and total cost.
Reference Table
| Loan Amount | Rate | Term | Monthly | Total Interest |
|---|---|---|---|---|
| $10,000 | 6% | 3 yr | $304 | $951 |
| $20,000 | 5% | 5 yr | $377 | $2,645 |
| $30,000 | 6.5% | 5 yr | $587 | $5,217 |
| $50,000 | 7% | 10 yr | $581 | $19,668 |
Frequently Asked Questions
What is APR?
APR (Annual Percentage Rate) is the total cost of borrowing including interest and fees, expressed as a yearly rate. Use APR in this calculator for the most accurate results.
Should I use a longer or shorter loan term?
Shorter terms have higher monthly payments but much less total interest. Longer terms have lower monthly payments but cost significantly more overall. Use this calculator to compare both scenarios.
How much can I afford to borrow?
A common rule is that your monthly debt payments (including this loan) should not exceed 36% of your monthly gross income. Use this loan calculator to find a payment that fits your budget.
Tips & Advice
Always check your credit score before applying for a loan - a higher score means lower interest rates. Compare offers from at least 3 lenders and look at the total cost, not just the monthly payment. Making extra payments when possible can save thousands over the life of the loan. Use our monthly payment calculator to experiment with different terms and down payments before committing.