How to use the Loan Calculator
The loan calculator shows the monthly payment, total interest and yearly balance of a fixed-rate loan.
The formula
Payment = P × r ÷ (1 − (1 + r)^−n), with monthly rate r and n monthly payments.
Worked example
$20,000 at 6% for 5 years: about $386.66 a month and about $3,199 of interest in total.
Tips for better results
- Compare terms: shorter loans cost less interest.
- Check for fees that are not in the rate.
Common mistakes to avoid
- Entering the annual rate as the monthly rate.
- Judging loans by payment alone.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.