Loan Calculator
Estimate a monthly loan payment, total paid, and total interest using loan amount, rate, and term.
Loan Calculator
Monthly payment: 500.95 Total paid: 30,056.92. Total interest: 5,056.92.
What This Loan Calculator Estimates
This calculator estimates a fixed monthly payment for a loan with a fixed interest rate. It is useful for quick planning, comparison, and learning how loan payments work.
Loan Payment Formula
For a standard amortized loan:
payment = P x r x (1 + r)^n / ((1 + r)^n - 1)P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.
Worked Example
Suppose the loan amount is 25,000, the annual rate is 7.5%, and the term is 5 years.
- Convert the annual rate to a monthly rate: 7.5% / 12.
- Convert the term to months: 5 x 12 = 60.
- Apply the loan payment formula.
The estimated monthly payment is about 500.95.
What to Watch
- Fees, insurance, taxes, and prepayment rules may change the real cost.
- Variable-rate loans can change over time.
- A longer term usually lowers the monthly payment but raises total interest.
FAQ
Is this financial advice?
No. This calculator is for educational and informational estimates only.
Can children use this page?
Yes, for learning how borrowing and interest work. A parent, guardian, or teacher should guide real finance decisions.