Loan Calculator
Calculate monthly payments and total interest for any loan
Loan Details
Understanding Loan Payments
When you take out a loan, understanding how your monthly payments are calculated is crucial for making informed financial decisions. This calculator helps you determine your exact monthly payment, total interest costs, and how your loan balance decreases over time.
How to Use This Calculator
- Enter the total loan amount you need to borrow
- Input the annual interest rate (APR) offered by your lender
- Set the loan term in years (how long you'll take to repay)
- Click "Calculate" to see your monthly payment and total costs
Key Loan Terms Explained
- Principal: The original amount you borrow
- Interest Rate: The percentage charged by the lender annually
- Loan Term: The length of time to repay the loan
- Monthly Payment: The fixed amount you pay each month
- Total Interest: The total cost of borrowing over the loan term
Tips for Getting the Best Loan
Shop around with multiple lenders to compare interest rates. Even a small difference in rates can save you thousands over the life of the loan. Consider making extra payments when possible to reduce total interest costs. Always check for prepayment penalties before signing a loan agreement.