The total principal you wish to borrow
The yearly interest rate charged
See how paying extra shortens your loan
Enter your loan details
Input your loan amount, interest rate, and term to see your estimated monthly repayments.
Practical Example
Suppose you borrow $10,000 for a personal project at a 7.5% interest rate over 60 months.
- • Your standard monthly repayment would be approximately $200.38.
- • Over 60 months, you will make total payments of $12,022.77.
- • The total interest paid over the life of the loan is $2,022.77.
If you decide to pay an extra $50 every month, you could pay off the loan 13 months earlier and save hundreds of dollars in interest.
Formula / Calculation Method
The standard amortization formula used to calculate the fixed monthly payment (M) is:
- P = Principal loan amount
- i = Monthly interest rate (Annual rate divided by 12)
- n = Total number of months (Loan term)
Common Mistakes
Focusing only on the monthly payment
Extending the loan term lowers your monthly payment, but drastically increases the total interest you pay over the life of the loan.
Ignoring origination fees
Many lenders deduct a 1-5% origination fee from your loan amount before depositing it. If you need exactly $10,000, you might need to borrow $10,500.
Frequently Asked Questions
Related Calculators
Loan estimate limitations and references
This calculator uses monthly end-of-period payments and a nominal annual rate divided by 12. It does not calculate APR or include lender fees automatically. Extra-payment payoff timing is an estimate, and actual schedules, rounding, fees, penalties and variable rates can differ by lender and jurisdiction. The currency selector changes the display symbol and suggested starting rate; it does not convert the entered amount.
Authoritative references
Important Disclaimer
Calculation method, worked example and reference
What this calculator does and formula: For principal P, monthly rate i and N payments, payment = P×i(1+i)^N ÷ ((1+i)^N−1); at zero interest payment = P/N.
Variables and units: Enter values in the units named by the controls. The calculator converts through its internal base unit or applies the displayed geometric or financial relationship before rounding the presented result.
Verified worked example: A 100,000 loan at 6% annually for 360 months gives 599.55 per month before fees, insurance and taxes.
Result interpretation, assumptions and practical limits: APR, fees, variable rates, payment timing and rounding can change lender schedules. Use the lender disclosure for contractual amounts.
Professional check: Treat the result as a planning estimate. Where safety, regulated work, contracts or significant money are involved, verify inputs and the result with the governing standard, manufacturer data and an appropriately qualified professional.