Loan Calculator

Easily calculate your loan details like monthly payment, total payment, and total interest. Input the loan's principal, interest rate, and term for accurate results.

Principal Amount:

Enter the principal loan amount, which is the initial sum borrowed from the lender.

Interest Rate:

Enter the interest rate as a percentage. Choose whether the rate is applied annually or monthly.

Loan Term:

Specify the length of the loan term in years or months. This determines the repayment schedule.

How is the Loan Calculated?

The loan calculator helps you estimate monthly payments, total payment, and total interest based on three key variables:

Principal Amount: The initial amount borrowed from the lender.

Interest Rate: The rate at which interest is charged on the loan, usually expressed as a percentage.

Loan Term: The length of time over which the loan will be repaid, often in years or months.

The monthly payment is calculated using the following formula:

M = P × [r × (1 + r)ⁿ] / [(1 + r)ⁿ - 1]

Where:

M: Monthly payment

P: Principal loan amount

r: Monthly interest rate (annual interest rate divided by 12)

n: Total number of payments (loan term in months)

Once the monthly payment is calculated, the total payment is simply the monthly payment multiplied by the total number of payments (loan term in months). The total interest paid over the life of the loan is the total payment minus the principal amount.

Example: If you borrow $10,000 at an interest rate of 5% annually for 5 years, the calculator will compute your monthly payment, total payment, and the total interest you'll pay over the loan period.