Loan Calculator
Wondering what that car, couch, or credit-card payoff actually costs per month? Punch in three numbers and see the real price tag.
How to use
- Enter the loan amount. That's the principal — what you're borrowing before any interest, e.g. $20,000.
- Add the APR and term. Type the annual interest rate (use 0 for an interest-free loan) and how many years you'll take to pay it off.
- Read your numbers. You'll see the monthly payment, the total amount paid over the life of the loan, and how much of that is interest.
- Compare scenarios. Shorten the term or lower the APR to see how much interest you save — then copy the summary to share or save.
Frequently asked questions
How do I calculate my monthly loan payment?
Use the amortization formula: M = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the monthly interest rate (APR ÷ 12 ÷ 100), and n is the total number of monthly payments. The calculator above does this math instantly — enter your amount, APR, and term to see your monthly payment.
How is the total interest on a loan calculated?
Total interest is simply your monthly payment times the number of payments, minus the original loan amount. On a $20,000 loan at 6.5% APR over 5 years, the monthly payment is about $391.32, total paid is about $23,479, and total interest is about $3,479. A shorter term or lower APR cuts that interest number down fast.
Does a 0% APR loan mean I pay no interest?
Exactly — at 0% APR the monthly payment is just the loan amount divided by the number of months, with zero interest added. For a $20,000 loan over 5 years at 0% APR, that's $20,000 ÷ 60 = $333.33 per month. This calculator handles 0% loans correctly instead of dividing by zero.
Why is my monthly payment higher than I expected?
Interest compounds monthly, and the earlier payments go mostly toward interest rather than principal. Also check whether your loan includes origination fees or insurance rolled into the balance — those raise the effective amount you're borrowing. If you're comparing against a lender's quote, small differences can also come from rounding or whether they count the first payment starting immediately.
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