Loan Calculator
Enter the amount, rate and term to get your payment, total interest, the APR once fees are counted, and a year-by-year schedule. Three more tools below cover how much you can borrow for a given payment, loans repaid in one lump sum, and bonds or notes bought at a discount.
Loan calculator: payments and schedule
How much can I borrow?
Deferred payment loan (one lump sum at the end)
Some loans, like many business, bridge or family loans, are repaid all at once when they mature, with interest compounding until then.
Bond or zero-coupon note: amount received today
When the amount due at maturity is fixed (a savings bond, zero-coupon bond or discounted note), this finds what it's worth today.
Loan payment formula
For a loan repaid in equal payments: payment = P × i ÷ (1 − (1 + i)−n), where P is the amount borrowed, i the rate per payment period (annual rate ÷ payments per year) and n the number of payments. A $25,000 loan at 8% for 5 years: i = 0.08 ÷ 12 = 0.006667, n = 60, so the payment is $506.91 a month and total interest is $5,414.59.
Early payments are mostly interest; later payments are mostly principal. Any extra payment goes straight to principal, which is why even small extra amounts cut total interest noticeably.
APR vs interest rate: if a lender takes an origination fee out of the loan, you receive less than you repay on, so the true yearly cost (APR) is higher than the note rate. Enter the fee to see the APR the Truth in Lending Act requires lenders to show you.
Common questions
How do I calculate a loan payment?
Use payment = P × i ÷ (1 − (1 + i)^−n). $25,000 at 8% for 60 months is $506.91 a month.
How much is a $10,000 loan over 5 years?
At 8% it's $202.76 a month, about $2,166 in total interest.
Does paying extra on a loan save money?
Yes, on any amortizing loan without a prepayment penalty. Extra goes to principal, so later interest is charged on a smaller balance.
What is the difference between APR and interest rate?
The interest rate sets your payment. APR also counts certain fees, such as origination fees, so it shows the full yearly cost and lets you compare offers.
How much can I borrow with a $500 monthly payment?
At 8% for 5 years, about $24,659. Use the 'How much can I borrow' box for other rates and terms.
Sources
- Consumer Financial Protection Bureau: What is an APR?
- eCFR: Regulation Z, 12 CFR 1026.22 (determination of APR)
- TreasuryDirect: Zero-coupon securities (STRIPS)
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.