Skip to content
Press Equals

Loan Calculator

Compute monthly payment, total interest, and payoff for a fixed-rate loan. Enter principal, rate, term, and payment frequency (monthly, bi-weekly, weekly) for personal, auto, or other loans.

Result

Payment per period

$188.71

Total paid
$11,322.74
Total interest
$1,322.74
Payments per year
12
How it’s worked out
  1. Payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
  2. P (amount borrowed) = $10,000.00
  3. r (rate per payment) = 5% ÷ 12 = 0.004167
  4. n (number of payments) = 5 × 12 = 60
  5. Payment = $188.71
  6. Total interest = payment × n − P = $11,322.74 − $10,000.00 = $1,322.74

Loan Payment Calculator

What this calculator does

This calculator computes the periodic payment, total amount paid, and total interest for a fixed-rate loan (e.g. personal loan, auto loan) given the principal, annual interest rate, and term in years. You can choose payment frequency: monthly, bi-weekly, or weekly. Results are in the same currency as the principal (e.g. dollars).

It is useful for comparing loan offers, planning budgets, and seeing how payment frequency affects payoff time and total interest. Borrowers and financial educators use it to understand amortization without fees or variable rates.

How to use it

  1. Enter Principal—the amount you borrow (e.g. $10,000).
  2. Enter Annual interest rate as a percent (e.g. 5 for 5%).
  3. Enter Term in years (e.g. 5).
  4. Choose Payment frequency: Monthly (12 payments/year), Bi-weekly (26), or Weekly (52).
  5. Read Payment per period, Total payment, and Total interest in the Result section.

Inputs are in the left panel; the result updates as you change any value. Use the same currency for principal (e.g. all dollars).

Formulas used

Standard amortizing loan formula:

  • Payment = P × r × (1 + r)^n / ((1 + r)^n − 1)
    where P = principal, r = periodic rate (annual rate ÷ number of periods per year), n = total number of payments.
    This is the level payment that pays off the loan exactly over n periods with interest applied each period on the remaining balance.

  • Payments per year: monthly 12, bi-weekly 26, weekly 52.
    More frequent payments mean more payments per year and usually a faster payoff and less total interest for the same nominal rate.

  • Total payment = payment × n.

  • Total interest = total payment − principal.

The same formula applies for any payment frequency with the correct r and n; interest is applied each period on the remaining balance.

Interpretation & examples

  • Monthly is the most common for consumer loans in the US. Bi-weekly and weekly can reduce total interest and shorten the term because you make more payments per year.
  • Example 1: $10,000 at 5% for 5 years, monthly → payment ≈ $188.71, total interest ≈ $1,322.74. Total paid ≈ $11,322.74.
  • Example 2: Same loan ($10,000, 5%, 5 years) with bi-weekly payments → payment ≈ $87.06 per bi-weekly period, total interest less than monthly due to shorter effective term and more frequent principal reduction.
  • Example 3: $25,000 at 7% for 6 years, monthly → payment ≈ $420.24, total interest ≈ $5,257. Use this to compare with a 5-year term to see the tradeoff between lower payment and higher total interest.

History & background

The present-value annuity formula has been standard in finance for decades and is used by banks and regulators for amortizing loans. Payment frequency options reflect common loan structures: monthly in the US for most consumer loans; bi-weekly and weekly in some markets or for accelerated payoff (e.g. matching paychecks). The math is the same regardless of frequency; only the period length and number of periods change.

Limitations & safety notes

  • Not financial or legal advice. Assumes a fixed rate and level payments; no fees, no prepayment penalties, or rate changes.
  • Actual loan terms may include origination fees, insurance, or variable rates. Use for estimation only and confirm with your lender. Read your loan agreement for the exact payment and total cost.
  • For tax implications (e.g. deductible interest) or legal questions, consult a qualified professional.

Common questions

How is the monthly payment calculated?

We use the standard amortization formula: P = L[c(1+c)^n]/[(1+c)^n - 1], where L is loan amount, c is monthly rate (APR/12), and n is number of payments. Interest is applied each period on the remaining balance, so the same payment pays off the loan exactly over the term.

Does this include taxes and insurance?

No. This shows principal and interest only. For a full mortgage payment, add property tax and insurance separately. Use the Mortgage Calculator if you need P&I plus tax and insurance in one place.

Does payment frequency affect total interest?

Yes. Bi-weekly or weekly payments mean more payments per year, so you pay off the loan faster and usually pay less total interest than with monthly payments for the same nominal rate and term.