Loan Calculator
Calculate monthly payments, total interest, and APR for any loan with comprehensive fee analysis
Loan Parameters
The principal amount you want to borrow
The nominal annual interest rate
How often you will make payments
Additional Fees (Optional)
Fees paid upfront that are not included in the loan amount
Fees that are added to the loan amount and accrue interest
Example Calculations
30-Year Mortgage Example
Loan Amount: $300,000
Interest Rate: 6.5% annually
Term: 30 years (360 monthly payments)
Monthly Payment: $1,896.20
Total Interest: $382,632.27
Total Cost: $682,632.27
Personal Loan Example
Loan Amount: $25,000
Interest Rate: 12% annually
Term: 5 years (60 monthly payments)
Monthly Payment: $556.11
Total Interest: $8,366.43
Total Cost: $33,366.43
Loan Payment Formula
Standard Loan Payment Formula
P = L × [c(1 + c)^n] / [(1 + c)^n - 1]
Where:
- • P = Periodic payment amount
- • L = Loan amount (principal)
- • c = Periodic interest rate (annual rate ÷ payments per year)
- • n = Total number of payments
APR Calculation
APR includes the interest rate plus additional fees and costs, expressed as an annual percentage. It provides a more accurate picture of the true cost of borrowing.
APR ≈ (Total Finance Charge ÷ Average Loan Balance ÷ Years) × 100
Loan Tips
Compare APR, not just interest rates, to see the true cost of borrowing
Consider making extra principal payments to reduce total interest
Factor in all fees, including origination, processing, and prepayment penalties
Shorter loan terms mean higher payments but less total interest
Common Loan Types
Mortgage Loans
15-30 year terms, secured by property
Auto Loans
3-7 year terms, secured by vehicle
Personal Loans
2-7 year terms, typically unsecured
Business Loans
Varies, may require collateral
Understanding Loan Calculations
How Loan Payments Work
Loan payments typically consist of principal and interest. Early in the loan term, most of your payment goes toward interest. As you progress, more goes toward principal, which is called amortization.
Key Factors Affecting Your Loan
- •Interest Rate: Higher rates mean higher payments and more total interest
- •Loan Term: Longer terms reduce payments but increase total interest
- •Principal Amount: The amount borrowed affects all other calculations
- •Fees: Additional costs that increase the true cost of borrowing
Types of Loan Fees
Origination Fee
Covers the lender's cost of processing your loan application. Typically 1-8% of the loan amount.
Prepaid Fees
Fees paid upfront that don't accrue interest, such as application fees or credit report fees.
Loaned Fees
Fees rolled into the loan amount that will accrue interest over the life of the loan.
Important: This calculator provides estimates. Actual loan terms may vary. Always consult with lenders for precise calculations and terms.