Loan Calculator

A loan calculator is more than a valuable tool to determine your monthly payments, total interest paid, repayment schedule, and relevant details associated with a loan. Using the tool, you can easily answer questions like: How much can I borrow, How much will I pay in interest, How long will it take to pay off my loan, etc.
Note: The numeric values in the calculator are for illustrative purposes; please enter your inputs
Edit your loan details

How to use the Loan Calculator

  • Input the numeric values for Loan Amount, Loan terms, Estimated Interest Rate, and Start date into the respective fields.
  • Press "Calculate" button to get the results. View your loan calculation results on the right (on PCs) or below (on mobile devices).
  • Use the "Add extra payments" feature underneath the result section to see how extra money repayments may affect your monthly payments, total interest, and amortization schedule.
  • If you want to recalculate, enter new values in the input fields and press the "Calculate" button again. If you want to set all the values to 0 for the new calculation, click "Reset".
Your Loan Calculation Results
Monthly payment: $ 1,110.21
Total principal paid$
Total interest paid$
Add extra payments
Calculate the impact of extra payments using any combination of the inputs below. To see your new amortization schedule, click ‘Apply extra payments’ then see the update table below.
The extra payments must be no more than the loan amount
The extra payments must be no more than the loan amount
Amortization for Loan
The below table provides a full breakdown of how the remaining loan balance will change over the duration of the loan agreement, based on the loan amount, loan terms, interest rate, and other inputs you have entered.
Expand all years
Payment datePayment
Interest paidPrincipal paidLoan balance

Are you considering applying for a loan and want to estimate your monthly payments before you really go for it? If that’s the case, an online loan calculator is more than a valuable tool to assist you in determining what your monthly payments and total loan cost would look like.

What is a Loan Calculator?

In essence, a loan calculator is a digital financial tool created to assist individuals and businesses in estimating the monthly payments associated with borrowing money. Playing the role of a virtual financial assistant, this tool enables you to enter all the key variables, including the loan amount, loan terms, interest rate, etc., and then instantly display details regarding your estimated monthly payment, the total cost of the loan, and other results.

Importantly, the loan calculator also provides you with a detailed breakdown of all interest and principal payments for each period over the life of the loan. This way, you yourself can have a clearer understanding of how your different payments get allocated over time.

This calculator can be super handy for anyone considering taking out a loan. It allows borrowers to make informed decisions about their finances as well as keep themselves from paying more than they need to. The great news is that tons of loan calculators are available these days, specialized for different types of loans, from auto loans to student loans, mortgages, repayment loans, and more.

How to Use a Loan Calculator

Using a loan payment calculator is easy if you understand the meaning of relevant key terms.

Loan Calculator’s Key Terms Explained

Here’s a look at the meanings of 8 key terms in a loan calculator, with 4 in the input fields and 4 in the outcome section:

In the Input fields:

  • Loan amount:

A loan amount, or the principal amount, refers to the original sum of money you (the borrower) receive from a lender and agree to pay back over time. It’s the base amount from which interest paid and fees for the loan will be calculated, determining your monthly payment and the total cost of the loan.

  • Loan terms:

Loan terms, measured in months or years, define the duration of a loan agreement between a borrower and a lender, within which a borrower commits to repaying a borrowed sum and the interest paid.

Loan terms affect the monthly payment amount, interest rate, and overall loan cost. A long-term loan generally results in high total interest paid but low monthly payments. In contrast, a shorter-term loan often results in smaller total interest payments but higher monthly payments.

  • Interest Rate:

The interest rate (%) refers to the cost of using the money over a specific period. For example, if you borrow a loan of $25,000 with an APR (annual interest rate) of 6%, then the total interest paid would be $3,000 for a 2-year term. Here’s the calculation illustrating this: $3,000 = $25,000 x 6% x 2.

The interest rate significantly affects the cost of borrowing, determining the additional amount you have to pay beyond the loan principal. A lower interest rate means lower overall borrowing costs, and vice versa.

  • Loan Start Date:

The Start Date marks the point in time when you (the borrower) receive the loan amount from the lender and begin to accrue interest on it. The loan start date affects the repayment schedule, the total interest, and the loan term.

In the Outcome section:

  • Monthly payment:

A monthly payment is simply the money the borrower pays their lender every month until the loan is 100% repaid by the end of the loan term. Please note that the monthly payment consists of two parts: the principal paid and the interest paid.

  • Total principal paid:

This is the loan amount, or the original sum of money that the lender lends you.

  • Total interest paid:

This term refers to the total amount of money the borrower has to pay to the lender in addition to the principal of the loan, reflecting the cost of borrowing the money. The total interest paid depends on different factors, including the loan term, loan amount, and interest rate.

  • Amortization Schedule:

It’s a table showing details regarding how a loan is paid off over time. It lists payment dates, all associated payment amounts, the interest and principal portions of each payment, and the remaining balance after every payment. By looking at the amortization schedule, you’ll have a comprehensive view of how each payment contributes to reducing the balance of the principal loan, assisting you in effectively managing loan repayment and better planning for your finances.

Step-by-step Instructions on Using a Loan Calculator

If you are new to the tool, simply follow the below instructions to estimate the monthly payments, total interest payments, and total payments associated with borrowing money:

  • Step 1. Enter the input data into the respective fields, including loan amount, loan term, estimated interest rate, and start date.

Note: In the Loan Terms field, click on or tap the drop-down arrow, then select either the Years or Months option for your loan term.

  • Step 2. Press the Calculate button and receive your loan calculation results.

Note: If you access the tool using your PC, the results are all displayed on the right of the calculator. If you access the tool using your mobile device, simply scroll down to see the results.

  • Step 3 (optional). Adjust your loan calculation results.

If you want to make any changes to the results or simply want to find out how a higher/lower interest rate, longer/shorter loan terms, or a different loan amount affects your monthly payment, go back to the calculator and change the input values. After that, press the Calculate button to see the new results.

  • Step 4 (optional). Use the “Add extra payments” feature underneath the result section to see how extra money repayments may affect your monthly payments, total interest, and amortization schedule.
  • Step 5 (optional). Reset the tool by pressing the Reset button if you want to do a brand-new loan calculation.

Benefits of Using a Loan Calculator

Whether you are considering a car loan, a personal loan, a mortgage, or else, using a free loan calculator can provide you with a bunch of enormous benefits, including:

  • Assessing the repayment affordability of a loan

First and foremost, by providing accurate estimates of monthly payments, total interest costs, and the overall cost of borrowing, even a simple loan calculator can enable borrowers to assess the affordability of a loan. That also allows you to better understand and foresee the financial commitment involved before committing to a specific loan product.

  • Allowing for the comparison of different loan options

Using the loan amortization calculator means you can easily compare different loan offers. Simply input varying loan amounts, interest rates, and loan terms, and then you, as a borrower, can find out how different loan options affect your total interest cost, monthly payment, and amortization schedule. By looking at the potential outcomes of various borrowing scenarios, you can seek the most suitable loan for your needs and repayment affordability.

  • Aiding in financial and budget planning

A personal loan calculator can help you quickly figure out how much money you have to set aside every month and/or year over the life of the loan. It does offer a roadmap for managing loan repayment until the end of the loan term, assisting you in setting realistic repayment goals until the loan is repaid completely.
This allows you to visualize the impact of payment schedules on your finances in the future, enabling you to align your borrowing decisions with both your short-term and long-term financial objectives.

  • Other benefits

Along with the ones listed above, using a loan calculator also comes with other advantages, including saving time and effort, convenience, and ease of use. You don't need to do any complicated math or use any formulas to calculate your total interest paid and monthly payments. You can also adjust the input values for your loan term, loan amount, and/or interest rate and then see the results instantly.

Additionally, the tool is totally free and highly compatible with different types of devices. So, you can use the loan calculator whenever you want without paying a fee for the service.

FAQs about the Loan Calculator

How do I calculate the monthly loan?

The formula for calculating the monthly payment for your loan is: M = P [i(1 + i)^n] / [(1 + i)^n – 1]

  • M: The monthly payment
  • P: The loan amount
  • i: The interest rate (divided by 12)
  • n: The number of monthly payments.

Why do loan interest rates matter?

Loan interest rates significantly matter since they determine the total cost of borrowing. A lower interest rate means cheaper overall borrowing costs and a lower total repayment amount, making loans more affordable, and vice versa.

The numbers from my lender and the loan calculator do not match. Why is that?

The differences between the numbers provided by your lender and the monthly loan payment calculator may arise from several factors. The lender's calculations may include additional fees, which are not accounted for in the loan calculator. Also, differences in compounding periods, rounding methods, and other factors can contribute to the variation.

How much loan can I qualify for Calculator?

It’s not easy to gain clear insights into how much loan you can qualify for. Fortunately, there are lots of free digital financial tools that can help you easily figure out the loan amount you may be eligible for based on various financial factors, including your income, credit score, expenses, debt-to-income ratio, and other relevant factors.

Using these tools, along with our free, simple loan calculator, can help you gauge your borrowing capacity and make informed decisions about your financial options. Still, it’s worth noting that the calculator's results are estimates, and the actual loan amount you qualify for will depend on the specific requirements of the lender and the type of loan you are seeking.

How to Pay Off a Loan Faster Calculator?

Along with basic loan calculators, many tools with more advanced features can help users better take control of their financial journey. The loan early payoff calculator is a great example; it helps develop a personalized plan to pay off the loan more quickly. This tool considers a wide range of factors, from the loan amount to the interest rate, extra payments, and more, then gives you insights into the impact of making extra payments, the influence of repayment timeline adjustment on reducing the overall interest paid, etc.

However, again, please note that the calculator's results are estimates, and individual financial circumstances may vary. It's advisable to use the calculators as a starting point and for informational purposes only; you should consult with a financial advisor to have a personalized plan for paying off your loan faster based on your specific financial situation.

More Financial Calculator Tools on our Site

In addition to the basic, simple loan calculator, our site also provides users with various other financial calculator tools tailored for specific purposes. They include:

Mortgage calculator

A mortgage calculator is a powerful tool for estimating monthly mortgage payments based on the home price, loan term, estimated interest rate, and more. It helps prospective homebuyers and homeowners assess affordability, compare mortgage options, and understand the influences of different loan terms, interest rates, or other factors on the total cost of the loan.

Car loan calculator

The car loan calculator is designed to assist individuals in determining the monthly payments and total cost of financing a used or new vehicle. By entering the vehicle price, interest rate, loan term, and other inputs, users can quickly evaluate different car loan options, make informed decisions about down payments, and budget effectively for their vehicle ownership. If you are searching for something like “how much car loan can I get approved for calculator”, then this is what you’re looking for.

Auto loan calculator

As with the car loan calculator, the auto loan calculator offers detailed insights into the costs associated with financing a vehicle purchase. It enables users to estimate monthly payments, total interest costs, and total loan payments. Using the tools also lets you easily assess the impact of (estimated) interest rates and loan terms on the total loan payment for financing a vehicle.

Loan repayment calculator

The loan repayment calculator is more than a versatile financial tool; it assists borrowers in visualizing different repayment scenarios. By simply adjusting variables, from the estimated interest rates to the loan amount and repayment terms, users can understand the impact of each of these factors on the total repayment amount and interest paid.


A loan calculator is a valuable financial tool for anyone considering applying for a loan. With this tool, you can instantly compare different loan options, clearly estimating your monthly payments, total interest paid, and total loan payment, whether a personal loan, a mortgage, a car loan, or any other type of loan. Thanks to this tool, it’s been easier than ever for you to make informed and wise decisions about your finances.