What this calculator estimates
Loan Calculator estimates the regular payment, total of payments, and total interest for a fixed-rate, fully amortizing loan. Enter the principal, annual interest rate, and term. The calculation assumes equal monthly payments and a rate that remains unchanged for the entire term.
How amortization works
Each payment covers accrued interest first and then reduces principal. Early in the loan, the outstanding balance is larger, so more of the payment goes to interest. Later payments generally direct more toward principal. Extending the term can reduce the monthly payment while increasing the total interest paid over time.
Example
When comparing two offers, enter the same loan amount with each rate and term. Look at both the monthly payment and total interest. A lower advertised payment is not automatically the less expensive loan if it results from a much longer repayment period. Small rate differences can become meaningful on a large balance or long term.
Important exclusions
The estimate does not automatically include origination charges, closing costs, insurance, taxes, late fees, variable-rate changes, balloon payments, or daily-interest conventions. Actual lender calculations can differ because of payment dates and rounding. Use the result for planning and comparison, then review the lender’s official disclosure before making a financial commitment.
Common questions
Why is a zero-rate loan different? With no interest, the basic payment is principal divided by the number of payments. Does paying extra help? Extra principal can reduce future interest and shorten the term when the agreement permits it, but this calculator’s standard result assumes scheduled payments only. Is APR the same as the interest rate? Not always; APR may incorporate certain fees, so compare the lender’s official APR and total-cost disclosures. Confirm whether an early-payoff charge applies before planning extra payments.
Related tools: Profit Margin, Pricing Calculator, and Date Calculator.