What Will the Loan Really Cost?

Before you sign for a car, a home improvement or a personal loan, check what you will pay each month and in total. Enter the amount, the interest rate and the term; the payment and the full schedule update as you type.

• Monthly payment: The fixed installment of an annuity loan, the same every month.
• Total repayment and total interest: What the loan costs over its whole term.
• Flexible input: Interest per year or per month, term in years or months (up to 600 months).
• Amortization schedule: For every month or year, how much goes to interest, how much repays the loan and what is left.
• Shareable: The settings are kept in the page link, so you can send a calculation to someone else.

How the Monthly Payment Is Calculated

The Annuity Formula

Payment = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r the monthly rate (annual rate ÷ 12) and n the number of months. 100,000 at 6% for 10 years gives r = 0.005, n = 120 and a payment of 1,110.21; the total is 133,224.60, of which 33,224.60 is interest. At 0% the payment is simply P ÷ n.

Why Early Payments Are Mostly Interest

Each month the interest is charged on the remaining balance. In the example, the first payment contains 500.00 interest and only 610.21 repayment. As the balance falls, the interest share shrinks and the repayment share grows.

Frequently Asked Questions