About the Loan Calculator

This loan calculator helps you estimate your monthly payments and the total cost of borrowing. It works for personal loans, auto loans, student loans, and any fixed-rate installment loan. The calculator uses the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where M is the monthly payment, P is the principal (loan amount), r is the monthly interest rate, and n is the total number of payments.

Understanding the true cost of a loan goes beyond just the monthly payment. The total interest paid over the life of the loan can be substantial. For example, a $25,000 loan at 6.5% for 5 years costs about $4,360 in interest alone. By shortening the term or finding a lower rate, you can save thousands of dollars.

This tool is designed for fixed-rate loans with equal monthly payments. Variable-rate loans or loans with balloon payments may require different calculations. All calculations are performed instantly in your browser with no data transmitted to any server.