Loan Calculator

About Loan Calculations

This loan calculator helps you estimate your monthly payment, total payment amount, and total interest paid over the life of a loan. It uses the standard amortization formula to calculate fixed monthly payments.

How It Works:

The calculator uses the loan amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where:

• M = Monthly payment
• P = Principal (loan amount)
• r = Monthly interest rate (annual rate / 12)
• n = Total number of payments (years × 12)

Tips:

• Lower interest rates result in lower monthly payments and less total interest
• Shorter loan terms mean higher monthly payments but less total interest
• Making extra payments can significantly reduce total interest paid
• Always compare offers from multiple lenders