Loan Calculator

Enter the amount borrowed, annual interest rate, and repayment term in years, then select Calculate. Use the principal actually financed, rather than the purchase price if you are paying part of it upfront. Enter 5 for a 5% annual rate. A zero rate represents an interest-free scenario.

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HOW THE MONTHLY ESTIMATE WORKS

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The tool models a fixed-rate loan repaid in equal monthly installments. It converts years to months and uses the annual rate divided by 12 as the monthly rate. At 0% interest, monthly payment = amount borrowed ÷ number of monthly payments. Interest is calculated on the remaining balance, rather than charging the original balance every month.

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WORKED EXAMPLE

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For $10,000 at 5% over 5 years, the estimated monthly payment is about $188.71. Across 60 payments, total repayments are approximately $11,322.74 and interest is approximately $1,322.74, before fees and subject to rounding. At 0% over the same period, the payment is about $166.67 and total interest is zero.

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COMPARE THE WHOLE COST

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Changing the term changes both the payment and the time interest accrues. Compare monthly payment, total repayments, and total interest together. Keep the borrowed amount and rate unchanged when isolating the effect of a longer term.

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This model assumes a constant rate, monthly payments made as scheduled, and no additional borrowing or early repayments. Origination fees, optional insurance, daily interest, payment timing, and a lender’s rounding rules may change the result. An interest rate and an APR that includes fees are not interchangeable inputs. Use the estimate for comparison and check the lender’s repayment schedule before committing.