Loan Calculator
Calculate the monthly payment, total repayment and interest cost of a loan from the amount, interest rate and term, with a full amortization schedule. Supports USD, EUR, GBP and TRY.
Enter the sum of all installments.
How Is a Loan Calculated? The Payment Formula
A loan calculator works out the monthly payment, total repayment and interest cost from the loan amount, interest rate and term. Acting as both a loan interest calculator and a general interest calculator, it lets you calculate a loan from any amount, rate and term. The most common method is the equal-installment (annuity) formula, where you pay the same amount each month:
M = P x r(1+r)^n / ((1+r)^n - 1)
- M = monthly payment
- P = loan amount (principal)
- r = monthly interest rate (decimal, e.g. 0.5% → 0.005)
- n = term in months
The tool above computes this automatically: enter the amount, rate and term to instantly see your monthly payment, total repayment and interest cost.
Mortgage, Car and Personal Loan: One Calculator for Every Type
Whether you need a mortgage calculator, a car loan calculator, a personal loan calculator or a business loan calculator, this single tool covers them all — they share the same annuity formula. It also works as a home loan calculator, auto loan calculator and consumer loan calculator; only the typical interest rate and the maximum term change between them:
| Loan Type | Typical Term | Relative Rate |
|---|---|---|
| Mortgage | 120-360 months | Lowest |
| Car loan | 12-72 months | Medium |
| Personal loan | 12-60 months | Higher |
| Commercial loan | 12-120 months | Varies |
Converting a Yearly Rate to a Monthly Rate
If the lender quotes an annual interest rate, the simple method is to divide it by 12. For example, 6% per year is roughly 0.5% per month. In the tool, if you select the "Yearly" option, the conversion is done automatically. For the exact figure, use the effective monthly rate disclosed by your lender, since nominal and compound methods can differ.
Mortgage Payment Calculator: Planning a Home Loan
As a dedicated mortgage payment calculator, this tool is ideal for planning a property purchase. Because a mortgage spans 10 to 30 years, even a small difference in the interest rate has a large effect on the total cost. Enter the loan amount, your rate and the term to see the monthly payment and the lifetime interest before you commit. A handy rule when you calculate loan affordability: keep the monthly payment under about a third of your net household income so the repayment stays comfortable through changing circumstances.
- Down payment: A larger deposit lowers the principal, so the monthly payment and total interest both fall.
- Term length: A longer term cuts the monthly payment but raises the total interest — compare both in the tool.
- Rate type: A fixed rate keeps payments stable; a variable rate can move with the market over a long mortgage.
Car and Vehicle Loan Calculator
Used as a vehicle loan calculator or auto loan calculator, the tool helps you size the monthly payment for a new or used car before you visit the dealer. Car finance terms are usually shorter (12-72 months), so the monthly payment is higher but the total interest is far lower than a mortgage. Enter the vehicle price minus your down payment as the loan amount, add the quoted rate, and you immediately see whether the monthly payment fits your budget. Comparing a 36-month and a 60-month term side by side is the fastest way to balance an affordable monthly payment against the total interest you will pay.
Reading the Amortization Schedule
The amortization schedule shows, month by month, how each payment splits between principal and interest. In an equal-installment loan, the early months are interest-heavy; over time the principal portion grows and the interest portion shrinks. The tool produces a full schedule with the principal, interest and remaining balance for every month.
- Early months: Most of the payment goes to interest because the balance is high.
- Later months: Most of the payment goes to principal as the balance falls.
- Remaining balance: The outstanding principal after each payment, useful for early-repayment planning.
What Does the Total Interest Cost Mean?
Total interest = Total repayment - Loan amount. This is the real cost of borrowing. On a long-term mortgage the total cost can reach 1-2 times the principal. Shortening the term dramatically lowers what you pay overall: cutting a 120-month term to 96 months can reduce the total interest by 15-20%, even though the monthly payment rises.
Tips Before You Borrow
- Compare the total cost, not just the monthly payment: A longer term lowers the monthly payment but raises the total interest. Use the tool to compare scenarios.
- Check the payment-to-income ratio: Lenders often look for the monthly payment to be under 40-50% of net income.
- Mind fees and insurance: Origination fees, insurance and early-repayment charges add to the real cost beyond the headline rate.
- Fixed vs variable rate: A fixed rate keeps the payment stable; a variable rate can rise or fall with the market.
- Build an early-repayment plan: Even small extra payments toward the principal can cut the total cost significantly.
How to Use This Tool
Select a currency (USD, EUR, GBP or TRY). In the Calculate Payment mode, enter the loan amount, interest rate (monthly or yearly) and term in months, then press Calculate to see the monthly payment, total repayment, interest cost and full amortization schedule. In the Calculate Interest mode, enter a total repayment, monthly rate and term to back out the principal and total interest. All calculations run instantly in your browser. See the FAQ below for the payment formula, yearly-to-monthly conversion and total interest cost.
Frequently Asked Questions About the Loan Calculator
The equal-installment (annuity) loan formula is: M = P x r(1+r)^n / ((1+r)^n - 1). P = loan amount, r = monthly interest rate (e.g. 0.5% → 0.005), n = term in months. The tool above computes this automatically; enter the amount, rate and term to instantly see your monthly payment, total repayment and interest cost.
Simple method: annual rate / 12. For example, 6% per year is roughly 0.5% per month. If you use the "Yearly" option in this tool the conversion is automatic. For the exact figure, use the effective monthly rate disclosed by your lender.
With early repayment, the interest of the following months calculated on the remaining principal does not accrue. An early-repayment fee may apply depending on your lender. To estimate the net saving, review the full amortization schedule in the tool to see your remaining balance and future interest.
The calculation method is the same (the annuity formula). The difference is only in the interest rates and the maximum term. Mortgages are usually offered at lower rates and longer terms such as 120-240 months, while personal loan terms are usually 12-60 months.
Total interest = Total repayment - Loan amount. This shows the real cost of the loan. On a 10-year mortgage the total interest can reach 1-2 times the principal. Shortening the term dramatically lowers the interest cost; cutting a 120-month loan to 96 months can reduce the total interest by 15-20%.
No, the math is the same annuity formula for mortgage, car, personal and commercial loans. Only the typical rate and term differ. Enter the amount, rate and term and you get the monthly payment, total repayment and interest cost for any loan type.
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