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Tools · Calculators · Finance Last update: Nov 7, 2026

Loan Calculator

Work out the monthly payment, total interest and APR of any loan — with equal or decreasing payments and a full amortization schedule.

Payments
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Fees (optional) — for the APR
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Principal and interest by year
Amortization schedule

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How the monthly payment is calculated

Most loans are repaid in equal monthly payments (an amortizing loan). Each payment first covers the interest for the month; the rest pays down the balance. Because the balance shrinks, the interest part falls and the principal part grows over time.

payment = L × r ÷ (1 − (1 + r)−n)
L = loan amount, r = yearly rate ÷ 12, n = number of monthly payments

Example: $20,000 at 7.5% for 5 years gives r = 0.075 ÷ 12 = 0.00625 and n = 60, so the payment is $400.76. Over five years you pay $24,045.54 — $4,045.54 of it is interest.

Equal or decreasing payments

With decreasing payments you repay the same amount of principal every month ($20,000 ÷ 60 = $333.33) plus the interest on what is left. The first payment is higher ($458.33 in the example), the last one is only $335.42, and the total interest is lower: $3,812.50 instead of $4,045.54. Equal payments are easier to budget; decreasing payments cost less overall.

Fees and APR

Open Fees to add an origination or arrangement fee and any monthly fees. The calculator then shows the APR — the yearly rate at which the money you actually receive equals everything you pay back. With no fees, the APR equals the interest rate; with fees, it is higher and lets you compare offers fairly.

Reading the schedule

The chart shows how much principal and interest you pay each year and how the balance falls. Switch the table between yearly and monthly rows to see every payment.

Frequently asked questions

How do I calculate a monthly loan payment?

Use payment = L × r ÷ (1 − (1 + r)^−n), where r is the yearly rate divided by 12 and n is the number of months. $20,000 at 7.5% for 5 years costs $400.76 a month.

What is the difference between interest rate and APR?

The interest rate only covers interest. The APR also includes fees, so it shows the real yearly cost of the loan.

Are decreasing payments cheaper?

Yes. You repay principal faster, so you pay less interest in total — but the first payments are higher.