Loan Calculator
Calculate your monthly payment, total interest paid, and total repayment amount for any loan. Enter the principal amount, annual interest rate, and loan term to get an instant breakdown.
FAQ
Q: How is the monthly payment calculated?
A: Monthly payment = P × r(1+r)^n / ((1+r)^n − 1), where P = principal, r = monthly interest rate (annual rate ÷ 12), n = number of monthly payments.
Q: What is the difference between interest rate and APR?
A: The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees and other costs, giving a more complete picture of the loan's true cost.
Q: How can I reduce total interest paid?
A: Make extra payments to reduce the principal faster, choose a shorter loan term, or refinance at a lower interest rate. Even small extra monthly payments can significantly reduce total interest over time.