A loan calculator turns three simple inputs — how much you borrow, the interest rate, and how long you have to pay it back — into the numbers that actually matter: your monthly payment, the total interest you will hand over, and the true cost of the loan from start to finish.
How it works
Fixed-rate loans use a standard amortization formula that spreads your payment evenly across the term. Early payments are mostly interest; later payments are mostly principal. The calculator handles the math so you can focus on the trade-off between a lower monthly payment and a lower total cost.
A quick example
Borrow $20,000 at 7% for five years and your monthly payment lands near $396. Stretch that same loan to seven years and the monthly drops to about $302, but the total interest jumps from roughly $3,800 to $5,400. The calculator makes that gap visible in seconds.
Tips for accurate results
Use the fixed annual interest rate from your agreement. APR may include fees this calculator does not model, so entering APR can produce a different payment from your lender’s quote. Try the same loan at a shorter and longer term to see how much interest you can shave off, and always double-check the term unit — years and months are not interchangeable.
Adjust any number above to model your own scenario.