Calculators Lab
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Loan Calculator

Know exactly what a loan will cost you before you sign anything.

Adjust your inputs

Results update instantly as you type or drag.

100 – 10,000,000
$
0.1 – 50
%

The yearly interest rate from your lender

1 – 30

Quick insights

Total interest

$3,199

Total repayment

$23,199

Quick answer

How do you calculate a loan monthly payment?

Monthly Payment = P × r(1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate, and n is the number of payments.

How it works

From inputs to result in four steps

A quick walkthrough of what this calculator does behind the scenes.

  1. 1

    Enter the loan amount (how much you're borrowing).

  2. 2

    Add the annual interest rate from your lender.

  3. 3

    Set the loan term in years.

  4. 4

    See your monthly payment, total interest, and total cost instantly.

Formula

The math behind the number

No black box — here's exactly how the result is computed.

Monthly Payment  =  P × r × (1 + r)^n
                     ──────────────────
                        (1 + r)^n − 1

Each payment covers that month's interest first — the rest chips away at the principal. This is called amortization.

Examples

Real-world scenarios

See how the numbers play out for typical use cases.

Scenario 1

Car loan

$20,000 at 6% annual interest over 5 years → $386.66/month, $23,199 total repayment, $3,199 in interest.

Scenario 2

Personal loan

$10,000 at 9% annual interest over 3 years → $318/month, $11,449 total repayment, $1,449 in interest.

Scenario 3

Business equipment loan

$50,000 at 7% annual interest over 7 years → $754/month, $63,336 total, $13,336 in interest.

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