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Loan calculator

Find out what a loan will really cost you. Enter the amount, interest rate and term to see your monthly payment, total interest and a yearly repayment schedule.

Interest rate (per year)
Term
Upfront fees (optional)
Monthly payment
Principal
Total interest
Total cost
Effective annual rate
Show yearly repayment schedule
YearPrincipal paidInterest paidBalance left

Calculated instantly in your browser — nothing you enter is sent or stored.

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Preview

How to use the loan calculator

  1. Enter the loan amount you want to borrow and pick your currency.
  2. Set the yearly interest rate offered by the lender (the nominal rate).
  3. Choose the term – how many years you will take to pay it back.
  4. Optionally add any upfront fees. The calculator then shows the effective annual rate, which includes the cost of those fees.

The donut chart shows how much of everything you pay goes to the loan itself and how much goes to interest. Open the schedule to see, year by year, how much of your payments go to principal and interest and how much you still owe.

The formula

Most personal loans, car loans and mortgages are amortising loans: you pay the same amount every month, and each payment covers that month's interest plus part of the balance.

M = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

  • M = monthly payment
  • P = loan amount (principal)
  • r = monthly interest rate = yearly rate ÷ 12 ÷ 100
  • n = number of monthly payments = years × 12

Worked example

You borrow $25,000 at 5.9% a year over 5 years.

  • r = 5.9 ÷ 12 ÷ 100 = 0.0049167
  • n = 5 × 12 = 60
  • (1 + r)ⁿ = 1.0049167⁶⁰ ≈ 1.3422
  • M = 25,000 × 0.0049167 × 1.3422 ÷ 0.3422 ≈ $482.16 per month

Over 60 months you pay $28,929 in total, so the loan costs you about $3,929 in interest.

How to pay less interest

  • Choose a shorter term. The same loan over 3 years costs about $759 a month but only around $2,340 in interest.
  • Compare the APR, not just the rate. Fees raise the real cost. Enter them above to see the effective rate.
  • Pay extra when you can. Extra payments go straight to the balance, so less interest builds up. Check first whether your lender charges for early repayment.

Frequently asked questions

What is the difference between the interest rate and APR?
The interest rate is what the lender charges on the balance. The APR (or effective annual rate) also includes compulsory fees and the effect of monthly compounding, so it is the better number for comparing offers.
Why do I pay more interest at the start of a loan?
Interest is charged on the remaining balance. At the start the balance is highest, so a larger part of each payment is interest. As the balance falls, more of each payment goes towards the loan itself.
Does this calculator work for car loans?
Yes. Any loan with fixed monthly payments and a fixed rate works the same way. For a balloon or PCP car finance deal the payments are different, so the result will only be an estimate.
Is the result a loan offer?
No. It is an estimate based on the figures you enter. Your lender’s offer depends on your credit history and their terms.

Last reviewed: November 13, 2026

Results are estimates for general information only and are not financial, tax, medical or legal advice. Check important figures with a qualified professional.