Monthly payment, total interest and a full amortization schedule.
Before you sign for a personal loan, a car loan or any fixed-rate borrowing, run the numbers through this loan calculator. It shows the monthly payment, the total interest you will pay, the total cost and the payoff date. Add an optional extra monthly payment to see how much interest and time you would save, and use the amortization schedule to see how each payment is split between interest and the balance.
Quick answer: the monthly payment on a fixed-rate loan is P × i ÷ (1 − (1 + i)⁻ⁿ), where P is the amount borrowed, i is the annual rate ÷ 12, and n is the number of monthly payments. A $25,000 loan at 7.5% APR over 5 years costs about $500.95 a month and $5,056.92 in total interest.
How to Use the Loan Calculator
- Loan amount: how much you are borrowing.
- Interest rate (APR): the yearly rate on your loan offer.
- Loan term: in years or months.
- Extra monthly payment (optional): any amount you plan to pay on top each month.
You get the monthly payment, total interest, total of payments and payoff date. With an extra payment, you also see the interest saved and the time saved. Below that are a principal vs interest chart, a balance-by-year chart, a yearly amortization schedule and the first 12 monthly payments.
The Loan Payment Formula
M = P × i ÷ (1 − (1 + i)⁻ⁿ)
- M = monthly payment
- P = loan amount (principal)
- i = monthly interest rate = APR ÷ 12 ÷ 100
- n = number of monthly payments
This is the standard formula for an amortizing loan, where every payment is the same and the balance reaches zero on the last one. In India and some other countries, the monthly payment is called the EMI (equated monthly instalment). It is the same calculation.
Loan Examples
$25,000 at 7.5% for 5 years (60 months).
Monthly payment: $500.95. Total interest: $5,056.92. Total paid: $30,056.92.
The same loan with $100 extra each month.
It is paid off in 49 months instead of 60, and the total interest drops to $4,043.31, a saving of $1,013.61.
$10,000 at 12% for 3 years.
Monthly payment: $332.14. Total interest: $1,957.15.
How the Rate and Term Change the Cost
How each change affects what you pay:
| Change | Effect |
|---|---|
| Longer term | Lower monthly payment, but more total interest, because you borrow for longer |
| Shorter term | Higher monthly payment, but less total interest |
| Lower APR | Lower payment and less interest. Even 1% makes a noticeable difference on large or long loans |
| Extra payments | Every extra dollar goes straight to the balance, which cuts future interest |
Early in a loan, most of each payment is interest. As the balance falls, more of each payment goes to the principal. The amortization schedule shows this year by year.
APR vs Interest Rate
The interest rate is the cost of borrowing the money. The APR (annual percentage rate) also includes most required fees, such as origination fees, spread over the term. When comparing loan offers, compare APRs. Enter the APR in this calculator to get the closest picture of what the loan really costs.
What This Calculator Does Not Include
- Late fees, early repayment penalties or optional insurance.
- Variable rates. If your rate can change, the payment will change too.
- Sales tax, title and registration fees for vehicles. The auto loan calculator includes those.
For a home loan with property tax, insurance and PMI, use the mortgage calculator.
Loan Calculator FAQs
How is the monthly payment on a loan calculated?
Using the amortization formula above. The payment stays the same each month, but the split between interest and principal changes as the balance falls.
Do extra payments really save money?
Yes. On a fixed-rate loan, interest is charged on the remaining balance, so paying it down faster reduces every future interest charge. Check your loan has no early repayment penalty first.
What is an amortization schedule?
A table showing each payment split into interest and principal, and the balance left after it. The calculator shows it by year and for the first 12 months.
What is a good interest rate on a personal loan?
It depends on your credit score, income, the lender and current market rates. Compare APRs from several lenders before choosing.
How we checked this page: every example was calculated with the formula above and matches the calculator’s payment, interest and payoff results.
These results are estimates for planning and are not financial advice. Your lender’s figures may differ because of fees, rounding and the exact payment dates.