Calculate your monthly loan payment, total interest, and total cost for any fixed-rate loan.
Frequently Asked Questions
How is a monthly loan payment calculated?
Using the amortization formula M = P x r x (1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.
What is the difference between total interest and total paid?
Total paid is every payment added together over the life of the loan. Total interest is total paid minus the original loan amount — the extra cost of borrowing.
Does a lower interest rate always mean a lower payment?
Yes, for the same loan amount and term, a lower rate always reduces both the monthly payment and total interest paid.