Loan Calculator
Calculate monthly loan payments, total interest, and total cost for any personal loan. Enter amount, rate, and term to get instant results.
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Monthly Payment
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Total Interest —
Total Payment —
How to Use This Calculator
- Enter the Loan Amount — how much you want to borrow.
- Enter the Annual Interest Rate — check your loan offer or use current average rates.
- Select the Loan Term — shorter terms mean higher payments but less total interest.
- Review your Monthly Payment, Total Interest, and Total Payment instantly.
Formula
Monthly Payment:
M = P × [r(1+r)^n] / [(1+r)^n − 1]
- P = Principal loan amount
- r = Monthly interest rate (APR ÷ 12)
- n = Number of monthly payments (Years × 12)
Example
Example: $25,000 loan at 7.5% for 5 years.
- Monthly Rate: 7.5% ÷ 12 = 0.625%
- Number of Payments: 60
- Monthly Payment: $500.91
- Total Interest: $5,054.60
- Total Payment: $30,054.60
Frequently Asked Questions
- Use the formula M = P[r(1+r)^n]/[(1+r)^n - 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of months. This calculator does this automatically.
- The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees and other costs, giving a more complete picture of the loan cost.
- You can reduce total interest by choosing a shorter loan term, making extra principal payments, or securing a lower interest rate. Even one extra payment per year can significantly reduce total interest.
- Most lenders require a credit score of at least 580–640 for a personal loan. Scores above 720 typically qualify for the best rates. Higher scores mean lower interest rates.
- Personal loan rates typically range from 6% to 36%. As of 2024–2025, borrowers with excellent credit can find rates around 7–12%. Anything below 10% is generally considered good.