Loan Calculator – Estimate Monthly Payments, Interest & Repayment Schedule
Estimate your monthly loan repayments instantly with our Loan Calculator. Compare loan amounts, interest rates, and terms – and get a full amortization schedule to plan your finances with confidence.
Enter the values and click the calculate button to use
| Payment | Monthly Payment | Principal | Interest | Remaining Balance |
|---|
How the Calculator Works
Our loan calculator uses the standard fixed-rate installment loan formula – the same method used by banks and financial institutions worldwide to calculate equal monthly payments over a set loan term.
The Formula
M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ – 1]
| Variable | Meaning |
|---|---|
| M | Monthly payment amount |
| P | Principal loan amount (the amount borrowed) |
| r | Monthly interest rate (annual rate ÷ 12) |
| n | Total number of monthly payments (loan term in years × 12) |
What This Means in Plain Terms
When you take out a fixed-rate loan, your lender calculates a single monthly payment that covers both the interest owed and a portion of the principal balance – structured so the loan is fully paid off by the final payment.
In the early months of your loan, a larger share of each payment goes toward interest. As your balance decreases, more of each payment reduces the principal. This gradual shift is called amortization.
The calculator outputs four key results:
- Monthly payment – your fixed repayment amount each month
- Total interest paid – the cumulative cost of borrowing over the full loan term
- Total repayment – principal plus total interest (the true cost of the loan)
- Amortization schedule – a month-by-month breakdown showing exactly how much of each payment goes to interest vs. principal, and your remaining balance after each payment
Note: Results are estimates based on the information you enter. Actual loan terms, fees, and rates may vary by lender. Always confirm final figures with your financial provider.
Loan Calculator – Frequently Asked Questions
A loan calculator estimates your monthly repayment amount based on three inputs: the loan amount, the annual interest rate, and the loan term. It also calculates your total interest paid, total repayment cost, and generates a full amortization schedule so you can see how each payment is allocated over time.
The calculator uses the standard fixed-rate installment loan formula, which is the same method lenders use to calculate equal monthly payments. Results are highly accurate for fixed-rate loans. However, they are estimates – final figures will depend on your lender’s specific terms, fees, and any applicable charges not reflected in the calculator.
An amortization schedule is a complete table of your loan repayments from the first month to the last. For each payment, it shows how much goes toward interest, how much reduces your principal, and what your remaining balance is. It helps you understand the true structure of your loan over its lifetime.
