Loan Calculator – Estimate Monthly Payments & Interest Easily

Use our free Loan Calculator to estimate monthly payments, total interest, and amortization schedules for mortgages, auto loans, personal loans, and more. Whether you’re planning to buy a home, finance a car, or consolidate debt, this tool helps you make informed financial decisions.

How Does a Loan Calculator Work?

A loan calculator helps borrowers understand their repayment obligations by calculating:
✅ Monthly payments – How much you’ll pay each month
✅ Total interest cost – The extra amount paid over the loan term
✅ Amortization schedule – A breakdown of principal vs. interest per payment

Simply enter:

• Loan amount (e.g., $200,000 for a mortgage)

• Loan term (e.g., 30 years or 5 years)

• Interest rate (e.g., 6% APR)

• Payment frequency (monthly, quarterly, etc.)

The calculator instantly provides a detailed repayment plan.

Types of Loans You Can Calculate

1. Amortized Loans (Most Common)

• Fixed monthly payments over the loan term

• Each payment covers both principal + interest

• Examples: Mortgages, auto loans, personal loans

2. Deferred Payment Loans

• Pay nothing until the end of the loan term

• Then, a single lump sum is due

• Example: Some student loans, balloon mortgages

3. Bonds (Fixed-Income Securities)

• Predetermined payout at maturity

• Investors receive periodic interest + principal at the end

• Example: Corporate bonds, government bonds

Why Use Our Loan Calculator?

✔ Free & Easy to Use – No signup required
✔ Accurate Results – Real-time calculations
✔ Detailed Amortization Table – See how each payment affects your loan
✔ Mobile-Friendly – Works on all devices

How to Calculate Loan Payments (Formula Example)

The formula for calculating a fixed monthly payment (amortized loan) is:

Monthly Payment=P×r(1+r)n(1+r)n−1Monthly Payment=P×(1+r)n−1r(1+r)n​

Where:

• P = Loan principal ($100,000)

• r = Monthly interest rate (6% APR = 0.005 per month)

• n = Number of payments (e.g., 120 for 10 years)

Example:

• $100,000 loan at 6% for 10 years

• Monthly payment = $1,110.21

• Total interest = $33,224.60

Frequently Asked Questions (FAQs)

1. What’s the difference between APR and interest rate?

• Interest rate = Cost of borrowing the principal

• APR (Annual Percentage Rate) = Interest + fees (more accurate cost)

2. How can I reduce total interest paid?

• Make extra payments (even small amounts help)

• Choose a shorter loan term (e.g., 15-year vs. 30-year mortgage)

• Refinance at a lower rate (if interest rates drop)

3. Should I get a fixed or variable-rate loan?

• Fixed-rate = Stable payments (good for long-term loans)

• Variable-rate = Starts lower but can increase (riskier)

Final Thoughts

Understanding your loan payments before borrowing helps you save money and avoid surprises. Whether you’re taking out a mortgage, car loan, or personal loan, our free loan calculator gives you the insights you need to make smart financial choices.

Bookmark this page for quick access whenever you need to calculate loan payments!