calculate
CalculatorAILoan Calculator
settingsCalculation Parameters
5.5%
analyticsResults Overview
Monthly Payment
$477.53
Total Principal Paid$25,000.00
Total Interest Paid$3,651.74
Total Amount Paid$28,651.74
Payment Breakdown
Principal
Interest
How it Works
The loan calculator helps you determine the monthly payment on a loan. It can also show the total interest you will pay over the life of the loan. Most consumer loans, like car loans or personal loans, use a standard amortization formula where the monthly payment stays the same while the portion going towards interest decreases over time.
- Enter the total amount you wish to borrow.
- Specify the length of the loan in months or years.
- Input the annual interest rate provided by your lender.
Formula Used
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
M = Total monthly payment
P = Principal loan amount
i = Monthly interest rate
n = Number of months
Frequently Asked Questions
What is the difference between APR and interest rate?
The interest rate is the cost you will pay each year to borrow the money, expressed as a percentage. The APR is a broader measure of the cost to you of borrowing money, as it includes the interest rate plus other costs such as broker fees and points.
Can I pay off my loan early?
In most cases, yes. However, some loans have "prepayment penalties." You should check your loan agreement or ask your lender before making extra payments.