Loan Calculator
Calculate your monthly payments for personal or auto loans based on loan amount, interest rate, and term.
Introduction
Welcome to the Loan Calculator! This tool helps you estimate your monthly loan payments based on the loan amount, annual interest rate, and loan term in months.
How to Use
- Enter the total loan amount you wish to borrow.
- Enter the annual interest rate for the loan.
- Enter the loan term in months.
- Click "Calculate Payment" to see your monthly payment, total payment, and total interest paid.
- Review the summary and notes in the result section.
- Click "Reset" to clear the form and start over.
- Click "Save Entries" to store your calculations locally.
Understanding Loan Payments
The monthly payment for a loan is calculated using the standard amortization formula, which accounts for both principal and interest repayment over the loan term. The formula used is:
Monthly Payment = P [ r(1 + r)^n ] / [ (1 + r)^n – 1 ]
- P: Loan amount (principal)
- r: Monthly interest rate (annual rate / 12)
- n: Number of monthly payments (loan term in months)
Total payment is the monthly payment multiplied by the number of months, and total interest is the total payment minus the loan amount. This calculation assumes a fixed interest rate and does not account for additional fees or charges.
FAQs
What does the monthly payment include?
The monthly payment includes both principal repayment and interest on the outstanding balance, calculated using the amortization formula.
Does this include processing fees or other costs?
No, this calculator only estimates the principal and interest portion of your payment. Additional fees or charges are not included.
How accurate is this calculation?
This is an estimate based on standard loan formulas. Actual payments may vary based on lender terms, variable rates, or additional costs.
About This Calculator
Built by xAI, this Loan Calculator provides a simple way to estimate monthly loan payments for educational purposes. For precise figures, consult a financial advisor or lender.