Loan calculator
Work out the monthly payment, total interest and payoff date for a personal, car or business loan.
Results
Monthly payment
$415.17
This is your payment each month to clear the loan in 5 years at 9%.
- Loan amount
- $20,000.00
- Total interest
- $4,910.03
- Total paid
- $24,910.03All loan payments
- Time to pay off
- 5 years
- Last payment
- —
Loan balance over time
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How it works
Most loans are repaid in equal monthly payments that cover that month's interest plus a slice of the balance. We find the level payment that clears the loan in your chosen number of months, then build the schedule month by month. Any extra payment goes straight to the balance, so less interest builds up and the loan ends sooner.
Formula
- Loan = amount (or vehicle price − down payment)
- r = yearly rate ÷ 12 ÷ 100, n = term in months
- Monthly payment = Loan × r ÷ (1 − (1 + r)^−n)
- Each month: interest = balance × r; balance falls by payment + extra − interest
- Business fee = Loan × fee % (paid upfront, not borrowed)
Frequently asked questions
How much do extra payments really save?
Every extra amount cuts the balance right away, and interest is only charged on what is left. That saving repeats every month for the rest of the loan, so even small extras can trim months off the term. Check first that your lender allows early repayment without a penalty.
Why does a longer term cost more if the payment is lower?
Spreading the loan over more months lowers each payment, but the balance stays higher for longer. Interest is charged on that balance every month, so the total interest grows. A shorter term means higher payments but a smaller overall cost.
How is the upfront fee on a business loan handled?
We treat it as a one-off cost paid from your own pocket on day one, worked out as a percentage of the loan amount. It is not added to the balance, so it does not change the monthly payment, but it is included in the total cost. If your lender adds the fee to the loan instead, increase the loan amount by the fee.
Should I use the interest rate or the annual percentage rate?
Use the yearly interest rate on the loan agreement. An annual percentage rate usually bundles fees into the figure, which would make the monthly payment look slightly higher than it really is. The two can be compared to judge how much the fees add.
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Results are estimates only, not financial advice. Read the disclaimer.