Loan Calculator

Using the loan estimate

This calculator estimates the regular payment on a fixed-rate installment loan. Principal is repaid gradually while monthly interest is charged on the remaining balance. It is useful for comparing personal-loan offers and other fully amortizing loans with a known amount, rate and end date. Read the payment alongside total interest: the schedule that looks easiest each month can cost more over its full life.

Step-by-step inputs

1. Loan amount. Enter the principal you will actually owe. If fees are financed, check whether they increase this balance; if fees are withheld, the cash received may be less than the amount owed. Starting example: $25,000 .
2. Interest rate. The field uses an annual percentage as the monthly interest basis. A disclosed APR containing fees may differ from the contract interest rate, so confirm the lender's actual payment. Starting example: 8.5% .
3. Term (years). Use the repayment term in years. The engine converts it into monthly payments; this is not a weekly or biweekly payment model. Starting example: 5 yrs.
4. Additional months. Replace the starting value with your own, keeping the displayed unit and period. Starting example: 0 .

Worked example with the starting values

Using the starting inputs, the estimate is Your monthly payment: $513 / month.

The starting balance is spread across the selected number of monthly payments. Multiplying the modeled payment by that number gives total paid; subtracting the original principal gives modeled interest. Fees not reflected in the balance or rate are not added separately.

Total interest

$5,775

Total paid

$30,775

Number of payments

60

Compare term (years) scenarios

All other inputs stay at their starting values. These are modeled comparisons, not quotes, predictions or individual recommendations.

Make a useful comparison

Compare offers using the same amount and term before comparing rates. Otherwise a smaller payment may simply represent borrowing less or taking longer to repay. Once the cost of the rate is clear, test whether a shorter term fits your real monthly budget.

Keep loan repayment separate from the item or project budget. Borrowing for repairs, education or a purchase may involve additional ongoing costs that do not appear in an installment. Use take-home income and existing debt payments when deciding what is comfortable.

Review the repayment disclosure before accepting an offer. Confirm whether the rate is fixed, the first payment date, whether there is a balloon amount, and whether any fee is due upfront. Those features can make the actual schedule different from this equal-payment estimate.

Common mistakes to avoid

• This is not a revolving credit-card model. New borrowing, changing rates and minimum-payment formulas require different assumptions.
• A zero-interest loan still requires principal repayment. An attractive promotional rate does not erase the balance or guarantee that the rate lasts for the entered term.
• Rounded displayed payments can create small differences from a lender's final installment. Do not treat a rounding difference as evidence of an incorrect loan statement.