How to use it
- Enter loan amount, annual rate, and term in years
- Click calculate to see monthly payment
- Review total interest and total payments
This tool computes your monthly loan payment based on the amount borrowed, annual interest rate, and repayment term. It also shows total interest paid over the life of the loan and the total of all payments. Understanding these numbers before you sign helps you compare offers, budget accurately, and avoid overpaying. The monthly payment figure tells you exactly what hits your account each month. Total interest reveals the true cost of borrowing. Total of payments combines principal and interest into one sum. Use these results to decide if the loan fits your cash flow or if a shorter term or lower rate saves you money. No hidden fees, no jargon — just the three numbers that matter. Adjust the term or rate to see how small changes affect your monthly budget and total cost.
Pro tips
- Round up the term to the nearest year when comparing offers
- Add a waste allowance of 1-2% to your budget for fees
- Check total interest, not just monthly payment, to see true cost
- Enter the actual rate including any points or origination fees
Real-life examples
- Comparing car loan offers from different dealers
- Planning a home renovation loan before applying
- Checking student loan repayment before consolidation
Case study
Maria needed a $15,000 car loan. She assumed a 5-year term was cheapest until this calculator showed her a 3-year term saved $1,200 in interest. She switched lenders, lowered her rate by 0.5%, and paid off the loan faster with a lower total cost.