Loan Calculator
Estimate monthly payments, interest rates, terms, and see a total breakdown of repayment for personal, student, or consolidation loans.
About this Calculator
Estimate monthly payments, interest rates, terms, and see a total breakdown of repayment for personal, student, or consolidation loans.
Formula & Calculations
Formula
A = P [ r(1+r)^n ] / [ (1+r)^n - 1 ]Where:
- A=Amortized monthly payment
- P=Loan principal amount
- r=Periodic interest rate (annual interest rate / number of compound periods per year)
- n=Total number of repayment periods
Assumptions
- Assumes fixed interest rate throughout the loan.
- Assumes periodic compound matches standard payment period (usually monthly).
Calculation Examples
Example 1
Inputs:Loan Amount: $10,000, Interest Rate: 8%, Term: 5 Years
Result:Monthly Payment: $202.76
For a five year personal loan of $10,000, you will repay a total of $12,165.84, including $2,165.84 in total interest.
Frequently Asked Questions
What is the difference between simple interest and compound interest?
Simple interest is calculated only on the principal amount of the loan. Compound interest is calculated on the principal plus any accumulated interest from previous periods.
Can I pay off my loan early?
Most modern personal loans do not have prepayment penalties, allowing you to save money by paying down the principal faster. However, always review your loan agreement details first.