Loan Calculator

Calculate your estimated monthly payments and total interest for any loan.

Robert Davis

Reviewed by Robert Davis

Financial Analyst

Expert Verified
1 Year5 Years30 Years

Monthly Payment

$382.02
Total Principal:$20,000
Total Interest:+ $2,921
Total Cost of Loan:$22,921

Understanding Loan Amortization

This loan calculator uses the standard amortization formula to determine your monthly payments. Amortization is the process of spreading out a loan into a series of fixed payments. While the payment amount remains the same, the ratio of principal to interest changes over time.

Tips for Borrowers

  • Shorter Terms: Choosing a shorter loan term (e.g., 3 years vs 5 years) increases your monthly payment but significantly reduces the total interest paid.
  • Interest Rates: Even a 1% difference in APY can cost thousands over the life of a loan. Shop around.
  • Extra Payments: Most loans allow extra principal payments. Adding just $50/month can shorten your loan term by months.

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