Loan Payment Calculator
Calculate monthly payments and total interest for personal, business, or student loans.
⚙️ Loan Parameters
📊 Repayment Summary
Monthly Payment
$489.03
Total Repayment: $29,341.80
| Repayment Metric | Amount |
|---|---|
| Principal Loan Amount | $25,000.00 |
| Total Interest Payable | $4,341.80 |
| Total Cost of Loan | $29,341.80 |
How to Use This Calculator
- Step 1: Enter loan amount, interest rate, and term in years.
- Step 2: View required monthly payment and total loan cost.
Formula & Calculation Method
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where the variables represent:
| Variable | Description & Units |
|---|---|
| M | Monthly payment |
| P | Principal loan amount |
| i | Monthly interest rate (annual rate / 12) |
| n | Total number of months (years × 12) |
Worked Calculation Example
Scenario:
$25,000 loan at 6.5% interest for 5 years (60 months).
- Monthly interest i = 0.065 / 12 = 0.0054166
- Months n = 60
- M = $25,000 × [...] = $489.03
Result: Monthly payment is $489.03 with total interest of $4,341.80.
Frequently Asked Questions
Does this loan calculator apply to auto and personal loans?
Yes, standard fixed-rate amortized loans use this exact formula.
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Accuracy & General Guidance Disclaimer: This calculation tool is provided for educational and practical planning purposes. Formulas are verified against standard mathematical models. Do not rely on estimates as certified professional, financial, legal, or medical advice.