How loan calculator works
This loan calculator uses the standard amortization formula to work out fixed monthly payments. For a loan with principal P, monthly interest rate r, and n monthly payments, the payment is P times r times (1+r)^n divided by ((1+r)^n minus 1). If the rate is zero, it simply divides the principal by the number of payments.
Enter the amount you are borrowing, the annual interest rate as a percentage, and the loan term in years. The calculator converts the annual rate to a monthly rate (dividing by 12), counts the total number of monthly payments, and computes what you will pay each month, the total amount repaid over the full term, and the total interest paid.
The result assumes a fixed-rate loan with equal monthly payments. It does not account for variable rates, balloon payments, or fees. Use it as a planning estimate; your lender may differ slightly due to rounding or additional costs like insurance and taxes.