Loan Calculator
Monthly payment and total interest for any fixed-rate loan.
Quick answer
- The fixed monthly payment is Payment = P · r / (1 − (1+r)^−n), with r the monthly rate and n the number of months.
- Example: $10,000 at 12% for 12 months costs $888.49/mo and $661.85 in total interest.
- Compare loans by total interest and total repaid, not by the monthly payment alone — a longer term lowers the payment but raises the total cost.
- Worked example — Monthly payment: $888.49 (full example below).
Loan Calculator
| Monthly payment | $888.49 |
| Total interest | $661.85 |
| Total repaid | $10,661.85 |
Borrowing $10,000 at 12% for 12 months costs $888.49 per month and $661.85 in interest.
Enter a loan amount, interest rate and term to get the fixed monthly payment, the total interest and the total amount repaid.
This works for personal loans, student loans and any other installment loan with a fixed rate and monthly payments.
The formula
Worked example
Borrowing $10,000 at 12% for 12 months costs $888.49 per month and $661.85 in interest.
The example is pre-loaded in the result panel — press Calculate with your own numbers to replace it.
Common mistakes
- Comparing loans by monthly payment instead of total interest: stretching the term makes the payment look cheaper while the loan costs more overall.
- Ignoring fees and APR: origination and other fees are not in the interest rate, so two loans at the same rate can cost very different amounts — compare APR, not just the rate.
- Judging affordability on the payment alone without checking the total repaid over the full term.
Frequently asked questions
Why does a longer term cost more overall?
The balance stays higher for longer, so interest accrues on more money for more months, even though each payment is smaller.
Is this the same as APR?
Not quite — APR also includes fees. Use the APR calculator to compare loans with fees; use this one for the pure payment math.
Category: Finance calculators
Sources & methodology
This calculator applies the formula shown on this page exactly as written, using the standard definitions for its inputs. Results are computed from the values you enter — no data is stored — and are rounded only for display.
Content last reviewed by CalcHub Editorial.
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