Loan Calculator
Calculate loan payments, total interest, and payoff timeline
Monthly Payment
$501
Principal
$25,000
Total Interest
$5,057
Total Cost
$30,057
Frequently Asked Questions
How are loan payments calculated?▼
Loan payments use the amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P = principal, r = monthly rate, n = total payments.
What factors affect my loan payment?▼
Three main factors: the loan amount (principal), interest rate, and loan term (length). A higher amount or rate increases payments; a longer term lowers monthly payments but increases total interest.
What is the difference between APR and interest rate?▼
Interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus other charges like origination fees, giving you the true annual cost of the loan.