How to Use the Loan Calculator
Step-by-Step Instructions
Input the total amount you want to borrow. This is the principal amount of your loan, excluding any fees or interest. For example, if you're buying a $200,000 home with a $40,000 down payment, enter $160,000.
Enter the annual interest rate (APR) for your loan. This should be the rate quoted by your lender. Don't include the % symbol - just enter the number. For example, for a 5.5% rate, enter 5.5.
Select how long you'll take to repay the loan. You can enter this in years or months. Common terms are 15 or 30 years for mortgages, 5-7 years for auto loans, and 2-5 years for personal loans.
Choose your preferred currency from the dropdown menu. The calculator supports multiple currencies including USD, EUR, GBP, and more. This only affects the display format, not the calculations.
The calculator instantly shows your monthly payment amount, total interest paid over the loan term, and total amount you'll repay. A visual chart displays the principal vs. interest breakdown.
Understanding Your Results
Monthly Payment
This is the fixed amount you'll pay each month throughout the loan term. It includes both principal and interest portions.
Total Interest
The total amount of interest you'll pay over the entire loan term. This shows the true cost of borrowing.
Total Payment
The sum of your loan amount (principal) plus all interest payments. This is the total amount you'll have paid by the end of the loan.
Amortization Schedule
Click "Show Amortization Schedule" to see a detailed breakdown of each payment throughout your loan term, showing how much goes to principal vs. interest each month.
Calculator Features
- Real-time calculations as you adjust values
- Visual pie chart showing principal vs. interest
- Detailed amortization schedule
- PDF download of your loan details
- Share results via email or social media
- Print-friendly format for your records
- Mobile-responsive design
- No registration or personal information required
💡 Pro Tips
- Compare scenarios: Try different loan amounts, rates, and terms to see how they affect your payment.
- Extra payments: See how making extra principal payments could save you money (calculate a shorter term).
- True cost: Always look at the total interest to understand the real cost of borrowing.
- Budget planning: Ensure the monthly payment fits comfortably in your budget with room for emergencies.
Common Use Cases
Home Mortgages
Calculate monthly payments for home purchases or refinancing. Compare 15-year vs. 30-year mortgages to see the interest savings.
Auto Loans
Determine what car price fits your budget by testing different loan amounts and terms. Remember to factor in insurance and maintenance.
Personal Loans
Plan debt consolidation or major purchases. Compare offers from different lenders by inputting their rates and terms.
Student Loans
Understand your repayment obligations and see how different repayment terms affect your monthly budget and total interest.
Frequently Asked Questions
A: Yes, our calculator uses the standard amortization formula used by banks and lenders. However, your actual payment may vary slightly due to fees, taxes, or insurance not included in the basic calculation.
A: The calculator shows principal and interest only. For mortgages, you'll also need to budget for property taxes, homeowners insurance, HOA fees, and possibly PMI. For auto loans, consider insurance and maintenance.
A: Yes! You can download a PDF report of your calculation, print the results, or share them via email or social media using the buttons below the results.
A: This is how amortization works. Early in the loan, you owe more principal, so more interest accrues. As you pay down the principal, less interest accrues, so more of your payment goes to principal.
A: Shorter terms have higher monthly payments but save significant interest. Longer terms have lower payments but cost more overall. Choose based on your monthly budget and long-term financial goals.
Ready to Calculate Your Loan?
Now that you know how to use our calculator, put it to work for your financial planning.
Start Calculating