Microapp

Loan Calculator Online

Our Loan Calculator helps you understand the true cost of borrowing. Easily determine your monthly payments, the total interest you'll pay, and how your loan amortizes over time. Make informed financial decisions with clear, precise calculations.

Enter values to calculate your loan details.

How Loan Repayments Are Calculated

A loan calculator uses the standard amortization formula to determine your fixed monthly payment. Each payment covers both interest (charged on the remaining balance) and principal (reducing what you owe). In the early months, most of your payment goes toward interest. Over time, as the balance shrinks, more of each payment chips away at the principal — this is called an amortizing loan.

Worked Example

A $25,000 car loan at 6.5% APR over 60 months: Monthly payment = $487.73. Over the life of the loan you pay $29,263.80 total — meaning $4,263.80 in interest. If you shorten the term to 48 months, your monthly payment rises to $594.04 but total interest drops to $3,513.92 — saving you $750 just by paying it off 12 months earlier.

Monthly Payment by Loan Amount and Rate (5-year term)

Loan Amount4% APR6% APR8% APR
$10,000$184.17$193.33$202.76
$20,000$368.33$386.66$405.53
$30,000$552.50$579.98$608.29
$50,000$920.83$966.64$1,013.82

How loan payments are calculated

Loan repayments use the amortisation formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ−1] where M is the monthly payment, P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments.

Worked example: A $20,000 car loan at 6% APR over 48 months: r = 0.06/12 = 0.005, n = 48. M = 20000 × [0.005 × 1.005⁴⁸] / [1.005⁴⁸ − 1] ≈ $469.70/month. Total paid = $22,545.60. Total interest = $2,545.60.

Loan TypeTypical APR (US, 2025)
30-yr fixed mortgage6.5 – 7.5%
Auto loan (new car)5 – 8%
Personal loan10 – 20%
Student loan (federal)5 – 8%
Credit card18 – 28%

Frequently Asked Questions