Free Loan Calculator Online
Universal loan calculator for personal, business, student and auto loans — monthly payment, total interest and payoff date
About the Loan Calculator
The Loan Calculator computes the monthly payment, total interest paid, and complete payoff schedule for any amortising loan — personal, auto, student, business, or mortgage — using the standard formula: Payment = P × r(1+r)^n / [(1+r)^n − 1].
A $25,000 auto loan at 7.5% over 60 months costs $501/month and $5,060 total interest. Extend to 72 months and the payment drops to $426/month — but total interest rises to $6,688. You save $75/month but pay $1,628 more overall; the trade-off is immediate cash flow vs. long-term cost.
APR vs. interest rate: lenders advertise the interest rate but the Annual Percentage Rate (APR) includes origination fees, points, and other costs. A $200,000 mortgage at 6.5% with $4,000 in fees has an APR of 6.68% — always compare APR for true borrowing cost.
Total interest as a percentage of principal is the most sobering metric: a $300,000 home mortgage at 7% over 30 years costs $418,527 in interest — more than the home itself. Knowing this drives the decision to make extra payments, choose shorter terms, or prioritise paydown vs. investing the surplus.
The payoff date this calculator provides makes the abstract concrete: you can see exactly which month you'll make your last payment and how much sooner you'd finish with an extra $100/month.
Formula Used
Monthly Payment = P × r × (1+r)^n / [(1+r)^n - 1]
When Should You Use This?
The Loan Calculator is ideally suited for individuals, investors, and finance professionals who need to perform quick, accurate calculations related to general calculations. Use this tool when you need to verify figures, compare different scenarios, or get a precise answer without manual computation errors.
What Does The Result Mean?
The results displayed represent the exact financial figures based on your inputs. Use these numbers to compare different loan, investment, or tax scenarios, keeping in mind that actual bank rates may vary slightly due to processing fees or compounding differences.
Example Calculation
Comparing 48-month vs 72-month auto loan on a $28,000 vehicle at 7.9% APR
📥 Inputs
- Loan amount: $28,000
- APR: 7.9%
- Option A: 48-month term
- Option B: 72-month term
🔢 Calculation Steps
- 148-month payment: $28,000 × 0.006583 × 1.006583^48 / (1.006583^48 − 1) = $682/month
- 248-month total paid: $682 × 48 = $32,736 | Interest: $4,736
- 372-month payment: $28,000 × 0.006583 × 1.006583^72 / (1.006583^72 − 1) = $484/month
- 472-month total paid: $484 × 72 = $34,848 | Interest: $6,848
- 5Monthly saving: $198/month for 72-month | Extra interest cost: $2,112
Limitations of this Calculator
- Does not account for sudden changes in variable interest rates or dynamic market conditions.
- Excludes hidden bank fees, processing charges, or specific regional tax surcharges unless explicitly inputted.
- Calculations assume consistent compounding periods without accounting for leap years or non-standard payment dates.
How to Use the Loan Calculator
- 1Enter your values into the Loan Calculator input fields above.
- 2Review the input labels to ensure you are using the correct units.
- 3Click the "Calculate" button to get your instant result.
- 4Use the step-by-step breakdown to understand how the result was calculated.
- 5Export or copy your result to use in reports or share with others.
Tips & Best Practices
- Compare loans using APR (Annual Percentage Rate), not just the monthly payment — APR includes fees and gives the true cost of borrowing.
- Shorter loan terms have higher monthly payments but significantly less total interest paid.
- Double-check your input units before calculating — using the wrong unit is the most common source of errors.
- Bookmark this Loan Calculator for quick access next time you need it.
- Use the share button to send your results to a colleague or save them for later reference.
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⚠️ Financial Disclaimer: Results are estimates based on the inputs you provide and standard mathematical formulas. They do not constitute financial advice. Please consult a certified financial advisor, accountant, or tax professional before making any investment, loan, or financial decisions.