Loan Calculator
Calculate monthly payments, total interest, and total cost for any loan — car, personal, student, or business.
✔ Amortization Formula🌍 Any Loan Type
💳 Loan Calculator
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Total Interest
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How Loan Payments Are Calculated
All amortizing loans — personal loans, car loans, student loans — use the same standard formula. Each payment covers the interest accrued on the outstanding balance since the last payment, with the remainder reducing the principal. Because the balance decreases over time, less interest accrues each month, and more of your payment goes toward principal.
📐 Loan Amortization Formula
M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
M= Monthly payment
P= Loan principal
r= Monthly rate (annual ÷ 12)
n= Total months
Frequently Asked Questions
Making extra payments reduces the outstanding principal, which reduces future interest charges. For a 5-year $25,000 loan at 9.5%, paying an extra $100/month saves approximately $800 in interest and pays off the loan 7 months early.
Personal loan rates vary by credit score and lender: Excellent credit (740+): 6–12%; Good (670–739): 12–18%; Fair (580–669): 18–28%; Poor (<580): 28–36% or denied. Always compare the APR (Annual Percentage Rate), which includes fees, rather than just the interest rate.
⚠️ Disclaimer Estimates for informational purposes only. Not legal or financial advice. Consult a qualified professional.