Free calculator
Loan & Payment Calculator
Enter the loan amount, interest rate, and term to calculate the monthly payment, the total interest you'll pay, and the full cost of the loan over its lifetime.
The APR your lender quotes.
Monthly payment
$506.91
over 60 payments
Total interest
$5,414.59
Total cost
$30,414.59
This assumes a fixed-rate, fully amortizing loan with equal monthly payments. Real loans may include origination fees, variable rates, or different compounding — check your lender's terms for the exact figures.
Understanding what a loan really costs
The monthly payment is only part of the picture. Two loans with the same payment can cost very different amounts depending on the term and rate. Always look at the total interest and total cost, not just whether the monthly figure fits your budget.
Term vs. total cost
Stretching a loan over more years feels easier month to month, but you pay interest for longer. If the cash flow allows, a shorter term usually saves a meaningful amount over the life of the loan.
Plan around your cash flow
Before taking on a payment, make sure your incoming invoices comfortably cover it. Steady, predictable billing makes debt far easier to service.
FAQ
Frequently asked questions
It uses the standard amortization formula for a fixed-rate loan: the payment is based on the principal, the monthly interest rate (annual rate ÷ 12), and the number of months. Each payment covers interest first, with the rest reducing the balance, so the payment stays level for the whole term.
The interest rate is the cost of borrowing the principal. The APR also rolls in certain fees, so it reflects the true yearly cost. This calculator uses the rate you enter; if you want the all-in cost, enter the APR.
A longer term lowers the monthly payment but increases the total interest you pay over the life of the loan. A shorter term costs more each month but less overall. The calculator shows both so you can weigh the trade-off.
Yes. It works for any fixed-rate, fully amortizing loan — business loans, equipment financing, personal loans, or car loans. It doesn't model variable rates, balloon payments, or interest-only periods.
Yes — free, no signup, and it runs entirely in your browser.
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