💰 Finance Last tested2026-05-13
Loan Calculator (any type).
⚡
Quick answer
A $20,000 loan at 9.5% over 5 years works out to $420/month with about $5,194 in total interest. Adjust below.
💵
LiveLoan Calculator
$
%
Monthly Payment
$420
/month
Total Interest
$5,202
21% of total
Total Paid
$25,202
over 5 years
Principal vs Interest Split
79% principal
21% interest
✨ Live recalculation · Principal + interest only
📖 How to use
3 steps to your monthly payment.
1
Enter the loan amount (what you want to borrow)
2
Enter the annual interest rate (or APR if known)
3
Pick the loan term in years
🧮 The math
The formula, demystified.
The formula
M = P × [r(1+r)n] / [(1+r)n − 1]
- M = monthly payment
- P = principal (loan amount)
- r = monthly interest rate (annual ÷ 12)
- n = total monthly payments (years × 12)
❓ FAQ
Quick answers.
How is a loan payment calculated?
The standard formula is M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual ÷ 12), and n is the number of monthly payments (years × 12).
Does this work for any kind of loan?
Yes — personal, auto, student, business, or any installment loan with a fixed rate and term. The math is identical.
Does it include fees or origination charges?
No. The calculator shows pure interest and principal. Most lenders charge an origination fee (1–8% of the loan amount) on top. Ask your lender for the APR which folds those fees in.
Fixed vs variable rate — which does this assume?
Fixed. The rate you enter is treated as constant for the entire term. If you have a variable-rate loan, your actual payment will vary.
How can I reduce the total interest I pay?
Three options: a shorter term, a lower rate (refinance or improve credit), or extra principal payments. Even one extra payment per year cuts a 30-year loan by ~4 years.