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Loan Calculator

This loan calculator estimates payments on a fully amortizing fixed-rate loan, such as an auto loan or personal loan. It does not include origination fees, insurance, or variable rates.

Loan details

$

Annual rate

%

Results

Monthly payment

$500.95

Total interest

$5,057.00

Total repayment

$30,057.00

These calculators and articles are for informational purposes only and should not be considered financial, investment, tax, legal, or professional advice.

How this calculation works

This calculator assumes a fixed interest rate and equal monthly payments that pay the loan down to zero by the end of the term. Total repayment is the monthly payment multiplied by the number of months. Total interest is that amount minus the original loan.

It does not model balloon payments, interest-only periods, or variable rates. If a lender finances an origination fee, include that fee in the loan amount for a closer estimate.

Formula

M = P × [r(1 + r)^n] / [(1 + r)^n − 1]

Same amortizing formula used for a fixed-rate installment loan. Fees are not included unless you add them to the loan amount.

Example

A $25,000 loan at 7.5% for 5 years has 60 monthly payments of about $501. Total repayment is about $30,057, so estimated interest is about $5,057. A shorter term raises the payment and lowers total interest.

Frequently asked questions

What kind of loans does this cover?

Fixed-rate installment loans that amortize monthly, such as many auto loans and personal loans. It is not designed for credit cards, interest-only loans, or adjustable rates.

Are origination fees included?

No. If a fee is financed, add it to the loan amount for a closer estimate. If you pay fees up front, they are extra cash costs not shown in the payment.

What happens at a 0% interest rate?

The monthly payment is the loan amount divided by the number of months. Total interest is $0.

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