Loan Calculator
Calculate your monthly payment, total interest, and see a full amortization schedule for any loan amount, rate, and term.
Enter loan details to see results.
Monthly payment
—
Total interest
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Total cost
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Cost breakdown
Schedule
Amortization schedule.
| # | Payment | Principal | Interest | Balance |
|---|
Formula
Loan payment formula.
Monthly payment
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
- M
- Monthly payment
- P
- Principal (loan amount)
- r
- Monthly interest rate = annual rate ÷ 12 ÷ 100
- n
- Total number of monthly payments = years × 12
Example
Worked example.
$20,000 loan at 6.5% for 5 years
- P (principal)
- $20,000
- r (monthly rate)
- 6.5% ÷ 12 = 0.5417%
- n (payments)
- 5 × 12 = 60
Total paid
$23,479.20
Total interest
$3,479.20
FAQ
Frequently asked questions.
What is the difference between EMI and loan payment?
EMI (Equated Monthly Installment) and monthly loan payment refer to the same thing — a fixed amount paid each month that covers both principal and interest. EMI is the term commonly used in South Asia; "monthly payment" is used elsewhere.
Does a lower interest rate always mean lower total cost?
Not necessarily. A longer loan term with a lower rate can still cost more in total interest than a shorter term with a slightly higher rate. Always compare total interest paid, not just the monthly payment.
What happens if I make extra payments?
Extra payments reduce the principal faster, which reduces future interest charges and can shorten the loan term significantly. Many lenders allow this without penalty — check your loan agreement.
What is an amortization schedule?
A breakdown of every payment showing how much goes to interest vs. principal. Early payments are mostly interest; later ones are mostly principal. This calculator shows the full amortization table.
How does the loan term affect my payment?
A longer term means lower monthly payments but more total interest paid. A shorter term means higher monthly payments but less total interest. For example, a $20,000 loan at 6% over 3 years costs $608/mo ($1,904 interest); over 6 years it costs $332/mo ($3,893 interest).
What credit score do I need for a good loan rate?
Lenders vary, but generally: 750+ = excellent rates, 700–749 = good rates, 650–699 = fair rates, below 650 = limited options with higher rates. Always compare offers from multiple lenders.
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