Loan Calculator
Estimate loan payments, total repayment, and total interest from the loan amount, annual interest rate, and repayment term.
Payment = P × r ÷ (1 − (1 + r)−n)
P = loan amount, r = periodic rate, n = number of payments
A 10,000 loan at 10% yearly for 3 years has an estimated monthly payment of about 322.67.
Enter loan amount, annual rate, term, and payment frequency. The tool estimates periodic payments.
Use it before taking a loan, comparing loan offers, or planning repayment.
Common mistakes include confusing annual and monthly rates, ignoring fees, and assuming estimates are final lender quotes.
Examples
Example 1: Monthly loan
Loan: 10,000
Rate: 10%
Term: 3 years
Example 2: No interest
Loan: 1,200
Rate: 0%
Term: 1 year
Example 3: Longer term
Loan: 20,000
Rate: 8%
Term: 5 years
When to Use This Calculator
- Estimate monthly loan payments
- Compare loan terms
- Plan repayment budget
- Check total interest
- Review loan affordability
How It Works
- Enter loan amount.
- Enter annual rate and term.
- Select payment frequency and calculate.
Common Mistakes
- Ignoring loan fees
- Mixing monthly and annual rates
- Assuming exact bank approval terms
- Forgetting total interest
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Frequently Asked Questions
What does a loan calculator show?
It estimates payment amount, total repayment, and total interest.
Is this an exact bank quote?
No. It is an estimate. Lenders may include fees, insurance, penalties, and other terms.
What if the rate is zero?
The calculator divides the loan amount evenly across the number of payments.
Can I use any currency?
Yes. The currency only changes display formatting.
Why does a longer term cost more?
Longer terms usually reduce each payment but increase total interest over time.