Loan Calculator

How much will a loan cost you each month? Enter the loan amount, the interest rate and the term, and this loan calculator works out your monthly payment, the total interest and the total you will pay back.

Example filled in: a $20,000 loan at 7.5% interest over 60 months. 7.5% is an example rate, not a live market rate. Change any number below to run your own loan.

How to use this loan calculator

Enter the loan amount you want to borrow.
Enter the annual interest rate your lender quoted you.
Enter the loan term in months.
The loan calculator shows your monthly payment, total interest and total paid.

Formula

With a loan amount P, a monthly rate r (annual rate divided by 12) and n monthly payments, the monthly payment is M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1). Total paid is the monthly payment times the number of months, and total interest is total paid minus the loan amount. If the rate is 0%, the monthly payment is simply the loan amount divided by the number of months.

Worked example — $20,000 loan at 7.5% over 60 months

A $20,000 loan at 7.5% interest (an example rate, not a live market rate) over 60 months (5 years): the monthly rate is 0.625%, and the monthly payment is $400.76. Over 60 months you pay $24,045.54 in total, so the total interest is $4,045.54. Check it above — the loan calculator gives the same answer.

Frequently asked questions

How much is the monthly payment on a $20,000 loan?

It depends on the rate and the term. At 7.5% interest (an example rate) over 60 months, the monthly payment on a $20,000 loan is $400.76. Over 36 months at the same rate it is $622.12 a month, and the total interest drops to $2,396.48. Put your own rate and term into the loan calculator above to see your number.

How much interest will I pay on a loan?

Total interest is your monthly payment times the number of months, minus the amount you borrowed. On the $20,000 example above, that is $400.76 × 60 − $20,000 = $4,045.54. A shorter term or a lower rate both cut the interest.

What is a good interest rate for a personal loan?

There is no single good rate — it depends on your credit score, the lender and the loan type, and rates change often. This site does not publish live rates. Use the rate your lender quotes you in the calculator, and compare the monthly payment and total interest across lenders before you sign.

Does a longer loan term lower my monthly payment?

Yes, but it raises the total interest. Stretching the $20,000 example from 36 to 60 months cuts the payment from $622.12 to $400.76 a month, yet total interest rises from $2,396.48 to $4,045.54. Pick the shortest term whose payment you can afford.

How is a loan monthly payment calculated?

By the amortization formula in the Formula section above: the lender works out a fixed monthly payment that covers the interest due each month and pays the balance down to zero by the last month. Early payments are mostly interest; later payments are mostly principal.

Sources and method. Standard loan amortization formula: monthly rate = annual rate / 12; monthly payment = P × r(1+r)ⁿ / ((1+r)ⁿ − 1). Simple interest I = P × r × t; compound interest A = P(1 + r/n)^nt. Rates in the examples on this page are examples only, not live market rates. Results are estimates, not financial advice.

Estimate, not financial advice. This calculator uses the numbers you enter and the standard amortization formula. Your lender’s figures, fees and payoff rules can differ. Check the loan agreement and talk to a financial professional before you borrow.