Loan Principal
The principal is the amount you borrow before interest and other borrowing costs are included.
LOAN CALCULATOR
Estimate Your Loan Payment and Total Cost
Calculate an estimated loan payment using your loan amount, interest rate and repayment term. See how much you could pay each period, how much interest may accumulate and the total cost of borrowing.
01
Payment Estimate
02
Interest Breakdown
03
Total Repayment
ESTIMATED PAYMENT
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LIVE
Principal + Interest
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LOAN CALCULATOR
Know your payment before you borrow
Enter your loan details to estimate the payment, total interest and total amount you could repay over the selected term.
LOAN DETAILS
Enter your borrowing information
$
Amount you plan to borrow
%
Annual interest rate on the loan
years
Repayment period
Please enter a valid loan amount, interest rate and loan term.
This calculator provides an estimate based on the information you enter. Actual loan payments may differ because of fees, taxes, insurance, lender terms and other charges.
LOAN ESTIMATE
Estimated Payment
—
Enter your numbers to calculate
Loan Amount
—
Total Interest
—
Total Repayment
—
Loan Term
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PAYMENT BREAKDOWN
—
Principal
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Interest
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Important:
Loan calculations are estimates for educational purposes. Actual
payments can vary depending on lender terms, APR, fees, taxes,
insurance, payment timing and other costs.
UNDERSTANDING LOANS
What is a loan calculator?
A loan calculator is a financial planning tool that estimates how much you may need to pay when borrowing money. It can help you understand the relationship between the amount borrowed, interest rate and repayment period.
Instead of focusing only on the monthly payment, a good loan calculation also helps you see the total interest and total amount you could repay over the life of the loan.
Interest Cost
Interest is the cost charged by a lender for allowing you to use borrowed money.
Repayment Term
The loan term determines how long you have to repay the balance and can significantly affect total interest.
HOW TO USE IT
Calculate your loan in four simple steps
Use the calculator to build a clearer picture of your potential borrowing cost before comparing loan options.
Enter the Loan Amount
Enter the amount you expect to borrow. This is the starting principal used in the calculation.
Enter the Interest Rate
Add the annual interest rate associated with the loan you want to evaluate.
Choose the Loan Term
Enter how many years you expect to take to repay the loan.
Review the Results
Compare the estimated payment, total interest and total repayment before making a borrowing decision.
LOAN PAYMENT FORMULA
How the loan payment calculation works
For a standard fixed-rate installment loan with regular payments, the payment can be estimated using the standard amortization formula.
M = P ×
[r(1+r)n] /
[(1+r)n − 1]
This formula is commonly used for fixed-rate installment
loan calculations.
P represents the principal, r represents the periodic interest rate and n represents the total number of payments.
P
Loan principal
r
Periodic interest rate
n
Total number of payments
M
Estimated payment
LOAN REPAYMENT
Year 1
Year 3
Year 5
Year 7
Year 10
PRINCIPAL AND INTEREST
Your monthly payment is only part of the story
A loan payment generally contains both principal and interest. Early in an amortizing loan, a larger share of each payment can go toward interest. As the principal balance declines, more of each payment can go toward principal.
Looking at total interest alongside the monthly payment gives you a more complete view of the cost of borrowing.
Principal
Reduces the amount you owe.
Interest
Represents the cost of borrowing.
Total Repayment
Principal plus interest over the loan term.
WHAT AFFECTS YOUR PAYMENT?
Several factors can change your borrowing cost
Two loans with the same amount borrowed can have very different payments and total costs because of differences in rates, terms and fees.
Loan Amount
Borrowing more generally increases the payment and the total amount of interest paid over the life of the loan.
Interest Rate
A higher interest rate generally increases both the periodic payment and the total cost of borrowing.
Loan Term
A longer term can reduce the scheduled payment but may result in more interest paid over time.
Fees and Charges
Origination fees, application fees and other costs can increase the effective cost of a loan.
Payment Frequency
Monthly, biweekly and other payment schedules can change how payments are structured over a year.
Credit Profile
Lenders may offer different rates and terms depending on credit history, income, debt and other qualification factors.
LOAN TERM
Shorter vs longer repayment periods
The loan term can have a major impact on both affordability and total borrowing cost. A shorter term generally means higher scheduled payments but less time for interest to accumulate.
A longer term can lower the scheduled payment, but the loan may cost more in total interest if the interest rate and other terms remain comparable.
Shorter Term
- Higher scheduled payment
- Faster principal reduction
- Potentially less total interest
Longer Term
- Lower scheduled payment
- Longer repayment period
- Potentially more total interest
SMART BORROWING
Look beyond the monthly payment
Compare Interest Rates
A small difference in interest rate can have a meaningful impact on the cost of a large or long-term loan.
Check the Total Cost
Compare total repayment and total interest instead of choosing a loan based only on its monthly payment.
Understand the Terms
Review fees, prepayment conditions, variable-rate provisions and other terms before accepting a loan.
Keep Payments Affordable
A payment should fit comfortably within your overall budget after considering other debts and regular expenses.
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LOAN CALCULATOR FAQ
Common questions about loan calculations
A loan calculator can estimate periodic payments, total interest and total repayment based on the loan amount, interest rate and repayment term you enter.
For a standard fixed-rate installment loan, the payment can be calculated using an amortization formula based on the principal, periodic interest rate and number of payments.
A longer repayment period can reduce the scheduled payment, but it may increase the total interest paid because the balance remains outstanding for longer.
The basic calculation focuses on principal and interest. Actual borrowing costs can also include origination fees, application fees, insurance, taxes and other charges.
No. The result is an estimate based on the information entered. Your actual payment depends on the lender's approved rate, terms, fees and other applicable costs.
Both are important. The monthly payment helps you assess affordability, while total interest helps you understand the overall cost of borrowing.
PLAN BEFORE YOU BORROW
Calculate Loan Payment
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See what your loan could cost over time
Enter your loan details and compare the estimated payment, interest cost and total repayment.