Free Loan Calculator
Plan your finances with our easy-to-use Loan Calculator. Determine your monthly payments and total interest for personal, auto, or student loans.
Last Updated: 15 Jan 2026
Loan Details
Calculate your payments
Enter loan details to see monthly cost
What is a Loan Calculator?
A loan calculator is a financial tool that helps you estimate monthly loan payments, total interest costs, and the overall cost of borrowing money. It uses the standard amortization formula to break down how your loan payments are structured over time, showing how much goes toward principal versus interest.
Loan calculators are essential for financial planning, helping you compare different loan offers, understand the true cost of borrowing, and determine if a loan fits within your budget. Whether you're considering a personal loan, auto loan, student loan, or home loan, a loan calculator provides clarity on your financial commitment.
Why Use Our Free Loan Calculator?
Accurate Estimates
Get precise monthly payment estimates using the standard amortization formula. Understand exactly how much you'll pay each month and over the life of the loan.
Compare Loan Options
Compare different loan offers by adjusting interest rates, terms, and amounts. See how different loan structures affect your monthly payments and total cost.
Financial Planning
Plan your budget effectively by understanding your monthly loan obligations. Determine if a loan fits within your financial capacity before committing.
Common Use Cases for Loan Calculator
Personal Loans
Debt Consolidation
Calculate monthly payments for consolidating credit card debt or multiple loans into a single personal loan with a lower interest rate.
Major Purchases
Estimate payments for financing home improvements, medical expenses, weddings, or other large purchases with a personal loan.
Emergency Expenses
Calculate loan costs for unexpected expenses like car repairs, home repairs, or medical bills to understand your repayment obligations.
Auto & Student Loans
Car Financing
Calculate monthly car loan payments and total interest costs. Compare different auto loan offers to find the best financing option.
Student Loans
Estimate monthly payments for student loans to plan your post-graduation budget. Understand the long-term cost of education financing.
Loan Refinancing
Compare current loan payments with refinancing options. Calculate potential savings from lower interest rates or different terms.
Understanding Loan Amortization
How Amortization Works
Loan amortization is the process of scheduling a fixed-rate loan into equal monthly payments. Each payment consists of two parts:
- • Principal: The amount that reduces your loan balance
- • Interest: The cost of borrowing money
Early in the loan term, a higher percentage of your payment goes toward interest. As you pay down the principal, more of each payment goes toward reducing the loan balance.
Early Payments
In the first few years, most of your payment goes toward interest. For example, on a 30-year loan, early payments might be 80% interest and 20% principal.
Later Payments
As the loan matures, the balance shifts. Later payments are mostly principal, with less interest. This is why paying extra early can significantly reduce total interest.
Key Loan Terms Explained
Principal
The original sum of money borrowed in a loan or put into an investment.
Example: If you borrow $10,000, the principal is $10,000.
Interest Rate (APR)
The annual percentage rate charged on the loan. APR includes interest plus any fees, giving you the true cost of borrowing.
Example: A 5% APR means you pay 5% of the principal annually in interest.
Loan Term
The amount of time you have to repay the loan. Longer terms mean lower monthly payments but more total interest paid.
Example: A 5-year loan has 60 monthly payments; a 10-year loan has 120 payments.
Total Interest
The sum of all interest payments over the life of the loan. This is the true cost of borrowing money.
Example: A $10,000 loan at 5% for 5 years might cost $1,322 in total interest.
Frequently Asked Questions
How is the monthly payment calculated?
We use the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where M is monthly payment, P is principal, r is monthly interest rate, and n is number of payments.
Does this calculator include fees?
This calculator uses principal and interest only. Origination fees, closing costs, or insurance aren't included unless you add them to the loan amount manually.
Can I use this for a mortgage?
Yes, for principal and interest only. For a complete mortgage estimate including taxes and insurance, use our dedicated Mortgage Calculator.
What if I make extra payments?
Extra payments reduce the principal balance faster, which decreases total interest paid and can shorten the loan term. Our calculator shows standard payments only.
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