Loan Calculator
Calculate monthly loan payments, total interest, and full repayment cost for any personal or business loan.
Input Parameters
Results
Loan Repayment Basics
Every loan payment covers both interest (lender's fee) and principal (balance reduction). Early in the loan, most of the payment goes to interest. Over time, a larger portion reduces the principal.
What is the Loan Calculator?
The comprehensive Loan Calculator breaks down exactly how much borrowing money will actually cost you. It instantly computes the monthly payment and total lifetime interest for personal loans, auto loans, or mortgages.
How It Works (Algorithm)
The tool uses a standard amortization algorithm. Early in the loan, your monthly payment goes almost entirely to paying the bank's interest, with very little reducing the principal. The tool processes this sliding scale to find the perfect fixed payment.
$$ \text{Total Interest} = (\text{Monthly Payment} \times \text{Total Months}) - \text{Principal} $$
The true cost of financing a depreciating asset.
How to Use It
Enter the amount you wish to borrow. Input the interest rate and the duration of the loan. The calculator will provide your required monthly payment, and clearly show you the massive difference between the borrowed amount and the final paid amount.