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Loan Calculator
Work out your monthly loan payment, total interest and payoff date. Add extra payments to see how much you save, and download the full amortisation schedule.
monthly payment
$396.02
60 payments · paid off in 5 yrs
Total interest
$3,761.48
15.8% of everything you pay
Total repaid
$23,761.48
$20,000.00 borrowed
Payoff
5 yrs
How the $396.02 payment is worked out
Payment = P × r ÷ (1 − (1 + r)^−n). With your figures P = $20,000.00, r = 7% ÷ 12 = 0.5833% for each payment, and n = 60 payments, which gives $396.02.
That payment is then split. The first one charges the period rate on the opening balance: $20,000.00 × 0.5833% = $116.67 of interest, so $279.35 of it comes off what you owe and the balance ends the period at $19,720.65. Next period the same rate is charged on that smaller balance, so a little more of the identical payment goes to principal every time, and the last payment is almost all principal.
Fixed rate, fees excluded. An estimate, not financial advice, providers may calculate differently.
- Principal
- Interest
- Principal$20,000.0084%
- Interest$3,761.4816%
Amortisation schedule
| Year | Paid | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $4,752.24 | $3,461.90 | $1,290.34 | $16,538.10 |
| 2 | $4,752.24 | $3,712.20 | $1,040.04 | $12,825.90 |
| 3 | $4,752.24 | $3,980.52 | $771.72 | $8,845.38 |
| 4 | $4,752.24 | $4,268.27 | $483.97 | $4,577.11 |
| 5 | $4,752.52 | $4,577.11 | $175.41 | $0.00 |
Interest is rounded to the cent each period, as lenders do, so the schedule totals can differ from a spreadsheet formula by a few cents. Formula total: $3,761.44.
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How this is calculated
A fixed-rate loan is repaid with equal payments, and each one is split in two: the interest owed for that period, and the rest, which reduces what you still owe. The calculator takes the amount you borrow, the annual interest rate, the term and how often you pay, then works out the regular payment, the total interest over the life of the loan and the date of the final payment. Add an extra amount each period and it rebuilds the whole schedule, so you can see how much sooner the loan ends and how much interest you avoid. Each period's interest is rounded to the cent before the next one, which is how a lender's statement does it.
PaymentP × r ÷ (1 − (1 + r)−n)
- P
- the amount borrowed
- r
- the interest rate per period: the annual rate divided by the payments a year
- n
- the total number of payments
What this does not include
- Arrangement fees and APR: enter the contract rate, and a fee only counts if it is financed in the loan amount.
- Variable or tracker rates: the rate you enter is held for the whole term.
- Daily interest accrual and lender day-count conventions.
- Early-repayment charges and payment holidays.
How this calculator works
How the loan calculator works: the payment formula, step by step. Follow the amortisation formula from a $20,000 loan to its $396.02 payment, see why the last payment differs, and what extra payments and the term change.
This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.