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Finance Calc Kit
Loans

Simple Loan Calculator

Calculate monthly payments and total interest for a fixed-rate loan.

Loan details

$
%
years

Monthly payment

$377.42

60 months at 5.0%

Total payment

$22,645.48

Total interest

$2,645.48

Payment breakdown

  • Principal$20,000.0088.3%
  • Interest$2,645.4811.7%

How this payment is calculated

Three steps from your loan amount, rate, and term to the fixed monthly payment.

  1. Convert the annual rate to monthly

    Divide 5.0% by 12.

  2. Find the number of payments

    5 years is 60 monthly payments.

  3. Apply the amortizing loan formula

    Payment=P×r×(1+r)n(1+r)n−1\mathrm{Payment} = P \times r \times \frac{(1 + r)^{n}}{(1 + r)^{n} - 1}

    P is principal, r is the monthly rate, and n is the number of months. If the rate is zero, the payment is principal divided by months.

Payment schedule

Year-by-year totals. Open a year to see each month.

PeriodPaymentPrincipalInterestBalance
$4,529.10$3,611.11$917.99$16,388.89
$4,529.10$3,795.86$733.24$12,593.04
$4,529.10$3,990.06$539.04$8,602.98
$4,529.10$4,194.20$334.90$4,408.78
$4,529.10$4,408.78$120.31$0.00
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How the simple loan calculator works

A fixed-rate installment loan charges the same monthly payment for the full term. Each payment covers interest on the remaining balance plus a slice of principal. This calculator uses the standard amortizing loan formula to estimate your monthly payment, total interest, and payoff schedule. All math runs in your browser.

Enter the loan amount, annual interest rate, and term in years. Results update instantly, including monthly payment, total cost, and an optional amortization schedule. For loans with origination fees or APR comparisons, use the personal loan calculator. If you need tenure in months or a different payment frequency, the EMI calculator and payment calculator cover those cases. To model extra principal payments or year-by-year summaries, try the amortization calculator. For education debt specifically, the student loan calculator models standard fixed-rate student loan repayment.

Monthly payment formula

Payment=P×r×(1+r)n(1+r)n−1\mathrm{Payment} = P \times r \times \frac{(1 + r)^{n}}{(1 + r)^{n} - 1}

P is the principal, r is the monthly interest rate (annual rate divided by 12), and n is the number of months. When the interest rate is zero, the payment is simply principal divided by months:

Payment=Pn\mathrm{Payment} = \frac{P}{n}

Worked example

A $20,000 loan at 5% annual interest over 5 years (60 months) produces a monthly payment of about $377.42. Over the full term you repay roughly $22,645, of which about $2,645 is interest. Early payments carry more interest; later payments apply more to principal.

When to use this calculator

  • Estimate payments on a personal or student loan before you apply
  • Compare how a higher rate or longer term changes total interest
  • Review month-by-month principal and interest splits in the schedule

This tool assumes a fixed nominal rate with monthly compounding and equal installments. It does not include taxes, insurance, points, or prepayment penalties. For vehicle financing, the auto loan calculator adds trade-in and sales tax fields. To see how refinancing changes your payment, use the refinance calculator.

Frequently asked questions

What is an amortizing loan?
An amortizing loan is repaid with equal periodic payments that include both interest and principal. The balance drops to zero at the end of the term.
Does a longer term lower my monthly payment?
Yes. Spreading the same principal over more years reduces each monthly payment, but you pay more total interest over the life of the loan.
Why is total interest higher in early years?
Interest is calculated on the remaining balance. When the balance is largest at the start, more of each early payment goes to interest.
Can I enter the term in months?
This calculator uses years for simplicity. Divide months by 12 for a decimal year value, or use the EMI calculator for a months/years toggle.
Are my inputs saved?
No. Changing the fields only updates the page URL so you can copy and share your scenario.
Which currency is used?
Amounts are formatted in US dollars (USD).

Resources and references

The formulas and methods in this calculator were checked against these independent sources.