Loan Calculator

💰 How This Calculator Works

Calculates your monthly payment, total interest, and overall cost for a standard amortising loan. Enter principal, interest rate, and term to see the full payment schedule.

🔢 Worked Examples

• $10,000 at 6% for 36 months → $304.22/month, $952 total interest
• $250,000 at 4.5% for 360 months → $1,266.71/month
• $5,000 at 12% for 12 months → $444.24/month

📋 Common Use Cases

Loan calculators help you understand the true cost of borrowing money — including total interest paid, monthly payments, and amortization schedules. Whether you're financing a car, taking a personal loan, or comparing offers, these tools give you the numbers banks don't always lead with.

• Monthly payment planning before signing a loan
• Comparing fixed-rate vs reducing-balance loan structures
• Calculating total interest cost over the full loan term
• Finding the break-even point for extra payments

💡 Did You Know?

On a 30-year mortgage at 6%, you pay nearly as much in interest as you borrowed. A $300,000 mortgage costs about $647,000 in total payments — $347,000 of that is interest.

⚠️ Common Mistake

Using the annual interest rate directly — divide by 12 first. 6% annual = 0.5% monthly for the formula.