Loan Calculator
Calculate your loan payments with our free loan calculator. Estimate monthly payments, total interest, and total cost for any loan.
Frequently Asked Questions
How is a loan payment calculated?
Loan payments are calculated using the formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is monthly payment, P is principal, r is monthly interest rate, and n is number of payments.
What is the difference between principal and interest?
Principal is the original amount borrowed, while interest is the cost of borrowing that money. Your monthly payment typically includes both principal and interest.
How can I lower my loan payment?
You can lower your payment by: 1) Getting a lower interest rate, 2) Extending the loan term (though you'll pay more interest overall), or 3) Making a larger down payment to reduce the principal.