Finance
Calculate monthly loan payments, total interest, and total repayment from loan amount, rate, and a term entered in years or months.
Estimate the true cost of a personal, auto, or business loan before borrowing.
The monthly payment tells you whether the loan fits your cash flow. The total interest tells you how much the loan costs beyond the amount you borrowed.
A longer term usually lowers the monthly payment, but it can make the total interest much larger. That tradeoff is the first thing to compare.
The schedule breaks each month into interest and principal. Early payments usually contain more interest. Later payments reduce the balance faster.
Monthly payment = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is principal, r is monthly interest rate, and n is number of monthly payments.
A $25,000 loan at 7.5% for 5 years has an estimated monthly payment of about $501.
It estimates fixed monthly payments, total interest, and total repayment for an amortizing loan.
No. A longer term can lower the monthly payment but increase total interest.
Yes. It works for common fixed-rate loans such as auto, personal, and small business loans.