Loan calculator
Enter the amount, the yearly interest rate and how long you’ll take to repay. You get the monthly payment, the total interest and a schedule of how the loan is paid down.
Repayment schedule
How each year of payments splits between interest and the loan itself.
| Year | Paid | Interest | Loan paid down | Left to pay |
|---|---|---|---|---|
| 1 | $4,982.04 | $1,665.40 | $3,316.64 | $16,683.36 |
| 2 | $4,982.04 | $1,354.29 | $3,627.75 | $13,055.61 |
| 3 | $4,982.04 | $1,013.97 | $3,968.07 | $9,087.54 |
| 4 | $4,982.04 | $641.74 | $4,340.30 | $4,747.24 |
| 5 | $4,981.83 | $234.59 | $4,747.24 | $0.00 |
How it works
The calculator uses the standard formula for a loan repaid in equal monthly payments at a fixed rate:
Payment = P × r × (1 + r)n ÷ ((1 + r)n − 1)
P is the amount borrowed, r is the yearly rate divided by 12, and n is the number of months. Each month, interest is charged on what’s still owed and rounded to the cent; the rest of the payment pays down the loan, and the last payment clears what’s left. With a rate of 0, the payment is the amount divided by the number of months.
Example
Borrowing $20,000 at 9% a year over five years costs $415.17 a month. Over the 60 payments you pay $4,909.99 in interest, and the loan is paid down faster each year as the interest falls. Over three years, the payment rises to $635.99 but the interest drops to $2,895.82. The guide to loan payments walks through the numbers.
Common questions
How is the monthly payment on a loan calculated?
With the standard formula P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the amount, r the monthly rate and n the number of payments. See how loan payments are calculated for a worked example.
Does this work for car loans, personal loans and mortgages?
Yes, for any loan repaid in equal monthly payments at a fixed rate. It doesn’t include fees, insurance or taxes that some lenders add, so a lender’s quote may be a little higher.
Why is my last payment slightly different?
Each month’s interest is rounded to the cent, so the last payment clears whatever is left. It’s usually a few cents more or less than the others.
Can I use it for a loan to a friend?
Yes. Agree the amount, the rate (or zero) and the number of months, and the monthly payment pays it off exactly. If you lend with no interest, set the rate to 0.