Loan Calculator
Calculate monthly payments & total cost
Formula
M = P[r(1+r)^n] / [(1+r)^n - 1]
- M = Monthly payment
- P = Loan principal
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
FAQ
What happens if I make extra payments?
Extra payments go directly toward the principal, reducing the remaining balance faster. This saves interest over the life of the loan and can significantly shorten the loan term.
Is a shorter or longer loan term better?
A shorter term means higher monthly payments but much less total interest paid. A longer term lowers monthly payments but costs more overall due to accumulated interest.
What is a good interest rate for a loan?
It depends on the loan type and your credit score. Personal loans typically range from 6–36%, auto loans from 4–15%, and mortgages from 3–8%. Better credit scores qualify for lower rates.