How to use it
- Enter the loan amount you plan to borrow.
- Enter the annual interest rate as a percent.
- Enter the loan term in years and click Calculate.
This free tool shows the three numbers you need to understand any loan: the monthly payment, the total interest you’ll pay over the life of the loan, and the total of all payments. Knowing the monthly payment helps you match the loan to your cash flow, while the total interest reveals the true cost of borrowing. The total of payments combines principal and interest so you can compare offers side‑by‑side. Simply input the amount, rate and term, and the calculator instantly returns the results. Use the figures to budget, negotiate better terms, or decide if a loan fits your financial goals. No hidden formulas—just clear, actionable numbers.
Pro tips
- Add a small buffer (e.g., 5%) to cover rounding differences.
- Round the monthly payment to the nearest cent for budgeting.
- Compare loans with the same term before changing the amount.
- Double‑check that the interest rate is annual, not monthly.
Real-life examples
- First‑time homebuyer figuring out if a 30‑year mortgage fits her budget.
- Small business owner evaluating a equipment loan’s true cost.
- Retiree planning a reverse‑mortgage payment schedule.
Case study
Jane wanted to know if a $250,000 loan at 4.5% for 30 years was affordable. Using the calculator she saw a $1,266 monthly payment, $205k total interest, and $455k total cost, letting her decide to refinance.