Loan Calculator
Estimate your monthly loan or mortgage payment, total cost, and total interest.
Result
Monthly payment
386.66
Total paid
23,199.36
Total interest
3,199.36
How it works
A loan payment is built from two parts: interest on the remaining balance, and repayment of the capital itself. The standard annuity formula keeps the monthly payment constant over the whole term, which makes budgeting predictable. Early in the loan, most of each payment goes to interest, because the outstanding balance is still large. As the balance shrinks, the interest share falls and the capital share grows — that shifting split is called the amortization schedule. Two practical levers cut the total cost: a shorter term (higher monthly payment, but far less interest overall) and early repayments, which reduce the balance the interest is charged on. Always compare offers on the APR, which includes fees, rather than the bare interest rate.
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Frequently asked questions
How is my monthly loan payment calculated?
It uses your loan amount, interest rate and term in the standard amortization formula, spreading principal and interest evenly across every month.
What is the difference between the interest rate and the APR?
The interest rate is the cost of borrowing the principal; the APR also includes certain fees, so it reflects the true yearly cost more completely.
Does paying extra each month reduce the total interest?
Yes. Extra payments go straight to the principal, which shortens the term and lowers the total interest you pay.
What is amortization?
The gradual repayment of the capital over the term. Each payment covers the interest due plus a slice of capital, and the schedule shows how that split evolves month by month.
Is a shorter or longer loan term better?
A shorter term costs more each month but far less in total interest. A longer term eases the monthly budget at the price of a much bigger overall cost — choose based on what your budget can safely absorb.
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