Loan Calculator

This is the plainest version of a loan calculator on this platform: three inputs, loan amount, interest rate, and term, and one output, the monthly payment, plus the total interest and total cost that come with it. It works for any fixed-rate, fixed-term loan: personal loans, debt consolidation loans, equipment financing, a private note between two parties, or any other loan where the lender charges a fixed rate and expects level monthly payments until the balance hits zero.

If you want to see the effect of extra principal payments on the payoff timeline, or need a full period-by-period schedule with CSV export for a specific prepayment strategy, use this platform's loan amortization calculator instead. That tool is built around modeling extra payments and their effect on interest saved. This one is built for a fast answer to a simple question: how much will the loan cost every month.

The math is the standard fixed-rate amortization formula, the same one used by every lending calculator on this platform, applied here with no domain-specific assumptions, no tax, no fees, no insurance. Just principal, rate, and term.

1. Monthly interest rate. The entered annual interest rate is divided by 12 to get the periodic rate applied each month.
2. Monthly payment. The loan amount is amortized over the chosen term using the standard fixed-payment formula:

$$\text{Payment} = P \times \frac{i(1+i)^{n}}{(1+i)^{n} - 1}$$

where $P$ is the loan amount, $i$ is the monthly interest rate, and $n$ is the number of monthly payments. When the interest rate is zero, the payment is simply the loan amount divided evenly by the number of months.

1. Total interest. The monthly payment multiplied by the number of payments, minus the original loan amount.
2. Total cost. The loan amount plus total interest, equal to the sum of every scheduled payment.

Using the calculator's default inputs:

• Loan Amount: $20,000.00
• Interest Rate: 8.0% APR
• Term: 48 months

Step by step:

1. Monthly interest rate: 8.0% divided by 12 equals approximately 0.6667%
2. Monthly payment at 8.0% over 48 months: $488.26
3. Total interest paid, summed across all 48 scheduled payments: $3,436.41
4. Total of all 48 payments: $23,436.50

• Origination fees. Many personal and business loans deduct a fee from the disbursed amount, meaning the amount you actually receive can be less than the amount you owe and repay. This calculator's loan amount is the amount owed, not the amount received.
• Extra or prepaid principal. This calculator assumes the exact scheduled payment every month with no extra principal added. For a prepayment strategy and the interest savings it produces, use this platform's loan amortization calculator.
• Variable interest rates. If your loan's rate can change over time, actual payments will diverge from this calculator's fixed-rate projection as the rate moves.
• Late fees or missed payment penalties. This is a scheduled-payment model assuming every payment is made on time and in full.
• Domain-specific costs. This calculator does not add sales tax, property tax, insurance, or any other cost specific to a particular type of loan; it is deliberately generic. For a car loan with sales tax and fees, a mortgage with property tax and insurance, or a student loan with federal repayment terms, use this platform's dedicated calculators for those loan types.

• Comparing loans by monthly payment alone. Two loans with the same monthly payment can have very different total costs if the term lengths differ; always compare total interest or total cost, not just the payment.
• Entering the amount received instead of the amount owed. If your loan carries an origination fee deducted at disbursement, the balance you actually owe and repay is higher than the amount that lands in your account.
• Assuming a longer term is strictly worse. A longer term raises total interest but can be the right call if it keeps the monthly payment within a manageable share of your budget; the tradeoff depends on your situation, not a fixed rule.
• Ignoring how a rate quote is measured. A quoted "interest rate" and the loan's true APR can differ once fees are factored in. Use the APR figure for the most accurate comparison across loan offers.
• Not checking for prepayment penalties. Some loans charge a fee for paying off the balance early. If you plan to pay extra or pay off the loan ahead of schedule, confirm your loan does not penalize that before assuming the interest savings this calculator's amortization companion tool would project.

• Consumer Financial Protection Bureau: Personal loan and installment credit disclosure guidance.
• Federal Reserve Board: Regulation Z Truth in Lending Act requirements for APR disclosure on closed-end credit.
• Federal Trade Commission: Consumer guidance on comparing loan offers and total cost of credit.