How this loan calculator works
Enter your loan amount, annual interest rate, and term in years. The calculator uses the standard amortization formula to compute a fixed monthly payment that fully pays off the loan by the end of the term — the same math your bank uses.
The formula
M = P · r · (1 + r)n / ((1 + r)n − 1)
- P — principal (the amount you borrow)
- r — monthly interest rate (annual rate ÷ 12)
- n — total number of monthly payments (years × 12)
Tips to pay less interest
- Shorten the term — a 15-year loan costs far less interest than a 30-year one.
- Make one extra payment per year to shave years off the loan.
- Even a 0.5% lower rate can save thousands over a mortgage's life.
Frequently asked questions
Does this work for mortgages and car loans?
Yes — it works for any fixed-rate amortizing loan: mortgage, auto, personal or student loans.
Is my data saved anywhere?
No. Everything is calculated in your browser. Nothing is sent or stored.
Why is my real bank payment slightly different?
Banks may add taxes, insurance or fees. This shows the principal + interest portion.
Methodology and assumptions
- Instant browser math: results update from the inputs on this page and are not sent to an account.
- Next-step design: the score and action prompt are meant to help you compare scenarios and take one small practical step.