Loan Calculator

How do I calculate my monthly loan payment?

Your monthly payment is calculated using the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (loan term in months). For example, a $20,000 loan at 7% annual interest for 5 years (60 months) gives a monthly payment of $396. This calculator does the math for you — just enter the loan amount, interest rate, and term.

Why does my actual loan payment differ from what the calculator shows?

The calculator computes the pure principal-and-interest payment using the amortisation formula. Your lender may add escrow for property taxes, insurance, or PMI on top of that base payment. Origination fees and closing costs are also not included. If your quoted payment is higher than what this calculator shows, ask your lender for a fee breakdown — the difference is almost always escrow or fees, not a miscalculation.

What is the difference between APR and interest rate?

The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus origination fees, closing costs, and other one-time charges expressed as an annual rate. A 5% interest rate with $2,000 in fees on a $100,000 loan could result in an APR of 5.5% or more. APR is the better number for comparing loan offers from different lenders because it includes the total cost of borrowing.

How much money does a 1% interest rate difference actually save?

On a $300,000 30-year loan, the difference between 6% and 7% interest is $199 per month — and $71,640 over the full term. This is why shopping for the best rate matters more than many borrowers realise. Use the comparison view to model two rates side by side and see the lifetime cost difference.

Should I make extra payments on my loan?

Extra payments reduce your principal faster, saving you interest and shortening your loan term. Even small extra payments (like $50-$100/month) can save thousands in interest over the life of the loan. Use our calculator's extra payment feature to see the exact savings.

What payment frequencies are available?

We support weekly, bi-weekly, monthly, quarterly, semi-annual, and annual payment frequencies. Bi-weekly payments (26 payments/year) can save you interest compared to monthly (12 payments/year) because you make extra principal payments throughout the year.

How does an amortisation schedule work and why does the interest portion change over time?

An amortisation schedule splits each payment into interest and principal components. In the early years, most of each payment goes toward interest because the outstanding balance is large. As you pay down principal, the interest portion shrinks and the principal portion grows. On a $200,000 loan at 7% over 30 years, the first payment sends $1,163 to interest and only $131 to principal. By year 25, the split reverses — $433 to interest and $861 to principal. This is why extra payments early in the loan have an outsized impact: every dollar of principal you remove early eliminates years of future interest on that dollar.

What is the difference between a fixed-rate and a variable-rate (adjustable-rate) loan?

A fixed-rate loan keeps the same interest rate for the entire term, so your monthly payment never changes. A variable-rate loan (also called an adjustable-rate mortgage or ARM for home loans) has a rate that changes periodically based on a benchmark index. ARMs typically start with a lower rate than fixed loans (a "teaser" rate) for an introductory period (e.g., 5 years), then adjust annually. ARMs are riskier — your payment can increase significantly when the rate adjusts — but can save money if rates stay flat or fall. Use this calculator to model both scenarios: enter the fixed rate to see the stable payment, then enter the ARM's initial rate and consider what happens if it rises by 1-2% at the first adjustment.

How do I calculate the total cost of a loan including all fees?

The total cost of a loan is the sum of all payments over the term plus any upfront fees. For a $250,000 loan at 6.5% over 30 years, the monthly payment is $1,580 and total payments come to $568,800 — meaning you pay $318,800 in interest alone. Add origination fees (typically 0.5-1% of the loan, so $1,250-$2,500), closing costs, and any mortgage insurance to get the true total cost. The calculator shows the total interest figure; add your fees manually to get the all-in cost.

What is a balloon payment and how does it affect my monthly payments?

A balloon loan has lower monthly payments during the term because a large lump sum (the balloon) is due at the end. For example, a $100,000 loan at 6% with a 5-year term and a $50,000 balloon payment would have monthly payments of only $644 instead of $1,933 (the full amortisation payment). Balloon loans are riskier — you must either save up for the balloon, refinance it into a new loan, or sell the asset. They are common in commercial real estate and some auto loans. This calculator does not directly model balloon payments, but you can approximate the effect by using a longer amortisation period (e.g., 30 years) with a shorter actual term (e.g., 5 years) — the remaining balance at the end of the term is your balloon.

How does my credit score affect the interest rate I get?

Lenders use your credit score to assess risk. Higher scores qualify for lower rates. In the US, a borrower with a 780+ credit score might get a 6.5% rate on a 30-year mortgage, while a borrower with a 620 score might get 7.75% or higher. On a $300,000 loan, that 1.25% difference costs $260 more per month and $93,600 more over the full term. Before applying for a loan, check your credit score and consider improving it — even a 20-30 point increase can save thousands. Get pre-approved by multiple lenders to compare offers, as each lender may price risk differently.

What is the debt-to-income (DTI) ratio and why do lenders care about it?

Your DTI ratio is your total monthly debt payments divided by your gross monthly income. Most lenders require a DTI of 43% or lower for conventional mortgages, though some allow up to 50% for FHA loans. For example, if your gross income is $6,000/month and you have a $300 car payment, $200 in student loans, and a $1,500 mortgage payment, your DTI is 33% ($2,000 / $6,000). Use this calculator to find your monthly payment, then divide by your gross monthly income to check your DTI before applying. A lower DTI gives you more borrowing room and better rates.

Should I refinance my loan, and how do I calculate the break-even point?

Refinancing replaces your existing loan with a new one at a different rate or term. To decide if it is worth it, calculate the break-even point: divide the closing costs of the new loan by the monthly savings. If refinancing saves you $200/month and closing costs are $4,000, the break-even point is 20 months — if you plan to stay in the home longer than that, refinancing pays off. Use this calculator to compare your current rate and payment with the new rate and payment. Remember that refinancing resets the amortisation clock, so even with a lower rate, you may pay more total interest if you extend the term again.

Can I use this calculator for different types of loans — personal, auto, student?

Yes. The amortisation formula is the same regardless of loan type. Enter the loan amount, interest rate, and term for any instalment loan: a $30,000 car loan at 7% for 60 months, a $50,000 personal loan at 12% for 36 months, or a $25,000 student loan at 6.8% for 120 months. The calculator shows the monthly payment, total interest, and full amortisation schedule. For student loans with a grace period, start the amortisation from the repayment date, not the disbursement date.

How do I use the personal loan calculator?

Enter the loan amount, annual interest rate, and loan term in months or years. For example, a $15,000 personal loan at 10% APR for 36 months gives a monthly payment of $484. The calculator shows the total interest paid ($2,424) and the full amortisation schedule so you can see how each payment splits between principal and interest. You can also model extra payments to see how they shorten the term and reduce total interest.

How do I use the simple loan calculator?

Enter the loan amount, interest rate, and term. The simple loan calculator computes your monthly payment using the standard amortisation formula: M = P × [r(1+r)^n] / [(1+r)^n - 1]. For example, a $10,000 loan at 8% for 24 months gives a monthly payment of $452. The result also shows total interest and total cost over the life of the loan.

Can I use this as a motorcycle loan calculator?

Yes. Enter the motorcycle loan amount (e.g., $8,000), the APR your lender quoted (e.g., 6.5%), and the term (e.g., 36 months). The calculator shows the monthly payment ($245), total interest ($820), and amortisation schedule. The same approach works for any vehicle loan — cars, trucks, RVs, or motorcycles.

How do I use the personal loan payment calculator?

Enter the amount borrowed, annual percentage rate, and repayment term. The calculator estimates the regular payment, total interest, total repayment, and amortization schedule. For a personal loan, also check whether the lender charges an origination fee or prepayment penalty because those costs are not part of the principal-and-interest payment.

How do I calculate an auto loan payment with a down payment?

Subtract your down payment and trade-in value from the vehicle price, then add any taxes and fees that will be financed. Enter the resulting amount, APR, and term. Compare the monthly payment and total interest for 36-, 48-, 60-, and 72-month terms; a longer term lowers the payment but usually increases total interest.

How do I use the car loan payoff calculator?

Enter the remaining balance, current APR, and remaining term or current payment. Add a planned extra payment to see the new payoff date and interest savings. If you are requesting a payoff quote from a lender, use that quote for the exact amount because daily interest and fees can make it differ from a calculator estimate.

How do I calculate an auto loan with extra payments?

Enter the vehicle loan details and add an extra monthly amount or one-time payment. The calculator applies the extra amount to principal and recalculates the remaining schedule. Confirm that your lender applies extra payments to principal and does not advance your next due date instead, because that changes the interest savings.

How do I calculate a boat loan payment?

Enter the boat price minus your down payment and trade-in credit, then add any financed taxes or fees. Enter the APR and term to estimate the payment and total interest. Boat loans may have longer terms than auto loans and can include a large balance, so review the full amortization schedule before buying.

How do I use the RV loan calculator?

Enter the RV purchase price, down payment, trade-in credit, interest rate, and term. The calculator shows the estimated monthly payment and total interest. Include sales tax, registration, dealer fees, and any warranty amount that will be financed. Compare a shorter term with a longer term to understand the trade-off between payment size and total cost.

How do I calculate a motorcycle loan payment?

Enter the motorcycle price, down payment, financed fees, APR, and term. A shorter term usually costs less interest but has a higher payment. Also remember to budget separately for insurance, registration, gear, and maintenance because those ownership costs are not included in the loan payment.

How do I calculate a student loan monthly payment?

Enter the current balance, interest rate, and repayment term. The calculator estimates the standard amortizing payment and total interest. Federal and private student loans may offer different repayment plans, deferments, subsidies, or forgiveness rules, so use the estimate for planning and confirm the actual payment with your loan servicer.

How do I use a student loan repayment plan calculator?

Enter the balance and rate, then compare standard, graduated, extended, or income-driven assumptions where applicable. A standard plan pays the loan off over a fixed term; an income-driven plan depends on income and household details. The calculator can compare payment and interest patterns, but eligibility and current program rules must be confirmed with your servicer.

How do I calculate a loan payoff with extra payments?

Enter the remaining balance, interest rate, regular payment, and extra amount. The calculator projects the payoff date and interest saved. Try both a fixed monthly extra payment and a one-time lump sum. Making extra payments early usually saves more because it reduces the balance on which future interest is calculated.

What is a loan amortization schedule?

A loan amortization schedule lists every payment and shows how much goes to interest, how much reduces principal, and what balance remains. Early payments contain more interest because the balance is largest. As principal falls, the interest portion decreases and the principal portion increases.

How do I calculate a loan amortization schedule with extra payments?

Enter the loan amount, rate, term, and regular payment frequency, then add the extra payment. The schedule shows the accelerated balance reduction and the month the loan reaches zero. Compare the original and accelerated schedules to see both the shortened term and total interest saved.

How do I calculate an interest-only loan payment?

Multiply the outstanding balance by the annual interest rate and divide by the number of payments per year. A $50,000 balance at 8% has a monthly interest-only payment of about $333.33. Interest-only payments do not reduce principal, so check when principal repayment begins and whether a balloon balance is due.

How do I calculate a simple interest loan?

Simple interest is calculated as Interest = Principal × Rate × Time. For a $10,000 loan at 6% for 2 years, simple interest is $1,200. Some consumer loans use daily simple interest, where the interest depends on the exact number of days and balance. Check the loan agreement to identify the method before relying on an estimate.

How do I calculate a balloon loan payment?

Enter the regular payment assumptions and the shorter loan maturity. The amortization schedule shows the remaining principal at maturity, which is the balloon payment. Balloon loans have lower regular payments but require refinancing, selling the asset, or paying a large lump sum at the end.

How do I compare two loan offers?

Run each offer using the same principal and payment frequency, then compare monthly payment, total interest, upfront fees, and payoff date. A lower monthly payment is not necessarily cheaper if it comes from a longer term. Add origination fees and other required charges to compare the true cost.

How do I calculate a business loan payment?

Enter the business loan amount, rate, term, and payment frequency. Business loans may include origination fees, variable rates, balloon payments, or interest-only periods. Use the schedule to check the balance due at maturity and compare the payment with expected business cash flow.

How do I use a small business loan calculator?

Enter the amount needed, expected rate, term, and any down payment. Compare monthly payment and total interest for several terms. For an SBA or commercial loan, include the guarantee fee, packaging fee, or other lender charges in your total-cost comparison because they can materially change the effective cost.

How do I calculate an SBA loan payment?

Enter the SBA loan amount, interest rate, and term to estimate principal and interest. SBA loans may have variable rates, guarantee fees, and maximum-term rules depending on the program. Add the guarantee fee and other closing costs to the loan amount if they are financed, then confirm the final schedule with the lender.

How do I calculate a land loan payment?

Enter the land purchase price minus the down payment, then add any financed fees. Enter the interest rate and term to estimate the payment. Land loans often require larger down payments and shorter terms than home mortgages, so compare the monthly payment with the balance that may remain at the end of the term.

How do I calculate a home equity loan payoff?

Enter the remaining home equity loan balance, rate, and payment. Add extra principal payments to see how much earlier the loan ends. A home equity loan is secured by your home, so verify the payoff amount with the lender and avoid using an estimate for a closing or settlement.

How do I calculate a loan using quarterly or annual payments?

Select the payment frequency that matches the loan agreement and enter the annual rate. The calculator converts the rate and number of periods to that schedule. Do not simply divide an annual payment by 12 when the loan compounds differently; use the lender's stated periodic rate when available.

How do I calculate the remaining balance on a loan?

Enter the original amount, rate, term, and number of payments already made. The calculator projects the outstanding principal using the amortization schedule. For an exact payoff, ask your lender because accrued daily interest, fees, and payment timing can change the official balance.

How do I calculate loan interest paid each month?

The interest portion for a payment is the outstanding principal multiplied by the periodic interest rate. The first payment generally has the largest interest portion. The amortization schedule shows the interest and principal split for every payment so you can track how the balance changes.

How do I calculate a loan with a one-time lump-sum payment?

Enter the regular loan details and add the lump-sum amount at the payment date. The calculator applies it to principal and shows the new payoff date and interest savings. Confirm that the lender allows principal prepayments without a penalty and applies the lump sum directly to principal.

Can I use the loan calculator for different currencies?

Yes. The loan math is independent of currency. Select or enter the currency symbol that matches your scenario, then use the amount, rate, and term from the lender. Taxes, fees, compounding conventions, and consumer-protection rules vary by country, so verify the estimate against the local loan disclosure.

Input: $10,000 loan at 8% annual interest for 3 years

Result: Monthly payment: $313.36. Total interest: $1,281.09. Total repayment: $11,281.09.

Input: $25,000 car loan at 6.5% for 5 years

Result: Monthly payment: $489.16. Total interest: $4,349.60. Total repayment: $29,349.60.