Loan Calculator

Estimate your monthly loan payment, total interest and total cost.

Worked example

You borrow $20,000 at 7% for 5 years.

• Monthly payment: $396.02
• Total paid: about $23,761
• Total interest: about $3,761

At 9% instead of 7%, the same loan costs $415.17 a month, so a higher rate adds to both the payment and the total cost.

How it is calculated

Payment = P × r ÷ (1 − (1 + r)⁻ⁿ), where P is the amount borrowed, r is the monthly rate (annual rate ÷ 12) and n is the number of monthly payments (years × 12).

Shorter or longer term?

For the same $20,000 at 7%, the monthly payment and total interest change a lot with the term:

• 3 years: $617.54 a month, about $2,232 in interest
• 5 years: $396.02 a month, about $3,761 in interest
• 7 years: $301.85 a month, about $5,356 in interest

A longer term lowers the monthly payment but increases the interest you pay overall.

Frequently asked questions

Does this include fees?

No. Origination fees, late fees and insurance are not included, so your lender's quote may differ. Ask for the APR, which includes some fees.

How much do extra payments save?

In the example above, paying an extra $100 a month finishes the loan in 47 months instead of 60 and saves about $894 in interest. Check that your lender does not charge a prepayment penalty.

Does this work for car loans and personal loans?

Yes. Any fixed-rate loan with equal monthly payments uses the same formula, including car loans, personal loans and student loans.

What if my loan has a variable rate?

This calculator assumes a fixed rate. With a variable rate, the payment can change when the rate changes, so treat the result as an estimate.

Results are estimates for general information, not a loan offer or financial advice.