Calculate loan payments and generate a full amortization schedule.
A loan calculator determines your monthly payment and total cost for any fixed-rate loan. The standard formula is:
Where M = monthly payment, P = loan principal, r = monthly rate, n = number of payments. A $25,000 loan at 7.5% for 5 years costs $500.32 per month with $5,019 in total interest.
Monthly loan payments are calculated using the amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan principal, r is the monthly interest rate, and n is the total number of payments.
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus additional fees and costs, giving you a more complete picture of the loan cost.
Shorter terms have higher monthly payments but lower total interest paid. Longer terms have lower monthly payments but higher total interest. Choose based on your monthly budget and long-term financial goals.