Before you sign for any loan, you should know three numbers: the monthly payment, the total interest and the total amount you will pay back. Our free loan calculator works them out in seconds for any fixed-rate loan — personal, car, student or home — and shows a year-by-year breakdown of how your balance shrinks until it reaches zero.
Educational estimates only, not financial advice.
How to use this calculator
- Enter the loan amount — how much you want to borrow.
- Enter the annual interest rate — the rate the lender quoted you.
- Enter the term — in years or months, whichever the lender gave you.
- Read the result — your monthly payment, the total interest and the total paid, plus a compact table showing the balance at the end of each year.
How it works
The calculator uses the standard fixed-rate loan formula. The monthly payment is worked out from the loan amount, the monthly interest rate (annual rate divided by 12) and the number of payments, so the payment stays the same every month. Each payment first covers that month’s interest; the rest reduces the balance. The year-by-year table simply repeats that step month by month and records the balance once a year.
Worked example: borrow $10,000 at 12% for 3 years (36 months). The monthly payment is $332.14. Over the full term you pay $11,957.15 in total, of which $1,957.15 is interest. The balance falls to $7,055.84 after year 1, $3,738.30 after year 2, and $0.00 at the end of year 3.
Frequently asked questions
What does a loan calculator do?
It turns a loan amount, interest rate and term into the numbers that matter: your monthly payment, the total interest and the total you will pay back. It helps you compare offers before you commit.
What is the monthly payment formula?
In plain English: the payment is set so that, month by month, it covers the interest charged that month plus a slice of the loan — and the loan reaches exactly zero on the last payment. The maths behind it is the standard amortisation formula, which the calculator handles for you.
How much interest will I pay?
It depends on three things: how much you borrow, the rate, and how long you take to repay. A longer term means smaller monthly payments but much more interest in total — try 3 years against 5 years in the calculator and compare.
Can I use this for a car loan or a personal loan?
Yes — any fixed-rate loan works the same way: personal loans, car loans, student loans and home loans. It does not fit variable-rate loans, where the rate (and the payment) can change.
Does paying extra each month save money?
Yes. Extra payments go straight to the loan balance, so less interest builds up in the following months. Even $25 extra a month can cut weeks off a loan and save real money in interest.
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