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Loan & Interest Calculator

Calculate the monthly payment, total interest and full cost of a loan, with a year-by-year amortization breakdown.

Overpayments go straight against the principal, removing all the future interest that principal would have accrued.

$489.15
Monthly payment
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Total interest
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Total repaid
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Paid off in
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Interest saved

Year-by-year breakdown

YearInterestPrincipalBalance

About the loan calculator

The monthly payment is the number lenders advertise, and it is the least informative one. This calculator shows the monthly payment alongside the figure that actually matters: how much interest you will pay over the life of the loan. Extending a term lowers the monthly payment while often adding thousands to the total cost, and seeing both numbers together makes that trade-off obvious. The amortization breakdown shows how the split between interest and principal shifts over time.

How to use the loan calculator

  1. Enter the loan amount you plan to borrow.
  2. Enter the annual interest rate as a percentage.
  3. Set the loan term in years or months.
  4. Review the monthly payment, total interest and total repaid, then adjust the term to compare options.

Frequently asked questions

What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR (annual percentage rate) also folds in fees, points and certain charges, so it reflects the true annual cost. When comparing offers, compare APRs, because a low headline rate with high fees can cost more.
Why does so much of my early payment go to interest?
Interest is charged on the outstanding balance, which is at its highest at the start. On a standard amortizing loan the payment stays constant, so early payments are mostly interest and the principal portion grows steadily as the balance falls.
Does paying extra each month actually help?
Substantially, because extra payments go straight against principal and every dollar of principal removed also removes all the future interest it would have accrued. Even a small consistent overpayment can cut years off a long-term loan.
Does this handle interest-only or variable-rate loans?
No. It models a standard fixed-rate amortizing loan with equal monthly payments, which covers most personal loans, car finance and fixed-rate mortgages. Interest-only and variable-rate products need different assumptions.

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