Loan Calculator
FinancialCalculate the monthly payment, total interest, and total repayment for any fixed-rate loan.
15-Year vs 30-Year Fixed Loan Calculator options
Compare options side-by-side: evaluate fixed 15-year and 30-year amortization periods to determine the optimal repayment schedule for large fixed-rate loans.
Digital Calculation Report
Loan Calculator Report
Calculate the monthly payment, total interest, and total repayment for any fixed-rate loan.
Input Parameters
| Parameter | Value |
|---|---|
| Loan Amount | 20000 |
| Interest Rate | 7 |
| Loan Term | 5 |
Calculated Results
| Metric | Computed Value |
|---|---|
| Monthly Payment | $396.02 |
| Total Interest | $3,761.44 |
| Total Repayment | $23,761.44 |
Formula
Monthly Payment (M) = P * [r * (1 + r)^n] / [(1 + r)^n - 1]Computes fixed equal payments over a specified timeframe to pay down principal and accrued interest to zero.
Calculation Steps
1. Borrowing Base (P)
$20,000The initial principal balance of the loan.
2. Periodic Interest Rate (r)
0.005833The monthly interest percentage converted to decimal form.
3. Term Duration (n)
60 monthsThe total length of the loan amortization term.
4. Fixed Monthly Installment (M)
$396.02/moEqual payments covering interest and principal reduction.
5. Cumulative Interest Cost
$3761.44The absolute premium paid to the lender to borrow the principal balance.
Calculations are provided for educational purposes and should be independently verified for financial, investment, or medical decisions.
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Input Parameters
Adjust parameters to instantly compute metrics.
Computed Results
InstantComputed instantaneously in your browser with verified mathematical precision.
Calculation Breakdown
Proportion of borrowed principal compared to cumulative interest finance charges.
Loan Perturbation Scenarios
Evaluate how interest rates, loan terms, and loan amounts impact your monthly payment.
Formula Transparency
Amortized Installment Loan Payment
Computes fixed equal payments over a specified timeframe to pay down principal and accrued interest to zero.
Variable Definitions & Glossary
Original amount of money borrowed.
Annual interest rate divided by 12.
Loan duration term in months.
Step-by-step educational solution
Borrowing Base (P)
$20,000The initial principal balance of the loan.
Periodic Interest Rate (r)
0.005833The monthly interest percentage converted to decimal form.
Term Duration (n)
60 monthsThe total length of the loan amortization term.
Fixed Monthly Installment (M)
$396.02/moEqual payments covering interest and principal reduction.
Cumulative Interest Cost
$3761.44The absolute premium paid to the lender to borrow the principal balance.
How to Think About This Calculation
Understand standard amortization schedules for personal, auto, or student loans.
Core methodology
- 1.Acquire the total principal amount borrowed.
- 2.Convert the annual interest rate to a periodic monthly interest rate.
- 3.Calculate the exact monthly payment that ensures the balance reaches zero at the term limit.
Professional tips
- Making extra principal-only payments early in the loan dramatically reduces total interest costs over time.
- Check for pre-payment penalties before deciding to settle a loan early.
Common pitfalls
- Confusing nominal annual interest rate (APR) with periodic monthly compounding rate.
- Assuming payments are split equally between principal and interest throughout the term.