{"id":56678,"date":"2015-11-28T12:08:25","date_gmt":"2015-11-28T10:08:25","guid":{"rendered":"http:\/\/wpcalc.com\/?p=56678"},"modified":"2026-09-30T19:50:22","modified_gmt":"2026-09-30T16:50:22","slug":"loan-calculator","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/loan-calculator\/","title":{"rendered":"Loan Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 id=\"calculator-title\" class=\"text-lg font-display font-bold\">Monthly Loan Payment Estimator<\/h2><\/div><div class=\"calcdash-favorite group\">\n  <button type=\"button\" class=\"favorite\" id=\"favorite\" data-favorite-id=\"56678\" data-favorite-title=\"Loan Calculator\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/loan-calculator\/\" data-favorite-excerpt=\"Estimate your monthly loan payment, total payment, and total interest. Enter the loan amount, annual interest rate, and term in years to see the full cost of the loan.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-loan\">\n    <span class=\"icon icon-shape-star-empty\" aria-hidden=\"true\"><\/span>\n  <\/button>\n  <div class=\"calcdash-favorite__tip\" aria-hidden=\"true\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n  <span class=\"sr-only\" role=\"status\" id=\"favorite-status\"><\/span>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/loan-calculator\/\" method=\"POST\" class=\"calculator\" id=\"calculator-56678\" data-post=\"56678\"><fieldset class=\"fieldset-input\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"field has-term\" id=\"input-1\"><label for=\"field-1\">Loan Amount (P)<\/label><div class=\"term\">P<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"text\" name=\"loan_amount_p\" id=\"field-1\" aria-describedby=\"calc-unit-1 calc-info-1\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"200000\"\/><div class=\"unit\" id=\"calc-unit-1\">$<\/div><small id=\"calc-info-1\">Enter the loan principal amount<\/small><\/div><div class=\"field has-term\" id=\"input-2\"><label for=\"field-2\">Annual Interest Rate<\/label><div class=\"term\">r<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"text\" name=\"annual_interest_rate\" id=\"field-2\" aria-describedby=\"calc-unit-2 calc-info-2\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" max=\"100\" value=\"5\"\/><div class=\"unit\" id=\"calc-unit-2\">%<\/div><small id=\"calc-info-2\">Enter the annual interest rate<\/small><\/div><div class=\"field has-term\" id=\"input-3\"><label for=\"field-3\">Loan Term (years)<\/label><div class=\"term\">n<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"text\" name=\"loan_term_years\" id=\"field-3\" aria-describedby=\"calc-unit-3 calc-info-3\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"1\" value=\"30\"\/><div class=\"unit\" id=\"calc-unit-3\">years<\/div><small id=\"calc-info-3\">Enter the loan term in years<\/small><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"56678\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> Your Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>Monthly Payment<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-2\"><span class=\"field-title\"><span>Total Payment<\/span><\/span><span class=\"field-value\" id=\"result-2\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-3\"><span class=\"field-title\"><span>Total Interest<\/span><\/span><span class=\"field-value\" id=\"result-3\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><\/div><div class=\"result-actions\"><button type=\"button\" class=\"copy-link\"><svg viewBox=\"0 0 20 20\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M12.232 4.232a2.5 2.5 0 0 1 3.536 3.536l-1.225 1.224a.75.75 0 0 0 1.061 1.06l1.224-1.224a4 4 0 0 0-5.656-5.656l-3 3a4 4 0 0 0 .225 5.865.75.75 0 0 0 .977-1.138 2.5 2.5 0 0 1-.142-3.667l3-3Z\"\/><path d=\"M11.603 7.963a.75.75 0 0 0-.977 1.138 2.5 2.5 0 0 1 .142 3.667l-3 3a2.5 2.5 0 0 1-3.536-3.536l1.225-1.224a.75.75 0 0 0-1.061-1.06l-1.224 1.224a4 4 0 1 0 5.656 5.656l3-3a4 4 0 0 0-.225-5.865Z\"\/><\/svg><span class=\"copy-link__text\">Copy link to this calculation<\/span><\/button><span class=\"sr-only\" role=\"status\" id=\"copy-link-status\"><\/span><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"56678\" aria-live=\"polite\" aria-labelledby=\"calc-reactions-title\"><p id=\"calc-reactions-title\" class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/p><div role=\"group\" aria-labelledby=\"calc-reactions-title\" class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><div class=\"calcdash-ad not-prose calcdash-ad--calc_result calcdash-ad--in-article\"><ins class=\"adsbygoogle\" style=\"display:block\" data-ad-client=\"ca-pub-1721569815777345\" data-ad-slot=\"6317458308\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\"><\/ins><script>(adsbygoogle = window.adsbygoogle || []).push({});<\/script><\/div>\n<style id=\"wpcoderpro-inline-1\">.formula-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>Loan Monthly Payment Formula<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n\\[ M = \\frac{P \\times r}{1 - (1 + r)^{-n}} \\]\n<\/div>\r\n\t<\/figure>\r\n\t<\/p>\n<p><strong>Where:<\/strong><\/p>\n<ul>\n<li>\\(M\\) \u2014 monthly payment<\/li>\n<li>\\(P\\) \u2014 loan principal (the amount borrowed)<\/li>\n<li>\\(r\\) \u2014 monthly interest rate (annual rate divided by 12)<\/li>\n<li>\\(n\\) \u2014 total number of monthly payments (loan term in years multiplied by 12)<\/li>\n<\/ul>\n<p>This is the standard amortizing loan formula: it produces a fixed payment that pays off both interest and principal completely over the term. If the interest rate is 0%, the payment is simply \\(M = P \/ n\\).<\/p>\n<p>\r\n<\/section>\n<style id=\"wpcoderpro-inline-459\">.calculation-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section id=\"calculation\" class=\"calculation-box\" aria-labelledby=\"calculation-title\">\r\n\t<div id=\"calculation-title\" class=\"not-prose font-display\"><span class=\"icon icon-unordered-list\" aria-hidden=\"true\"><\/span><h2>Loan Calculator \u2013 Calculation Example<\/h2><\/div>\r\n\r\n<\/p>\n<p><strong>Example:<\/strong> you borrow $200,000 at an annual interest rate of 5% for a 30-year term.<\/p>\n<p>\\[ r = \\frac{5\\%}{12} = 0.0041667, \\quad n = 30 \\times 12 = 360 \\text{ months} \\]<\/p>\n<p>\\[ M = \\frac{200{,}000 \\times 0.0041667}{1 - (1 + 0.0041667)^{-360}} = \\frac{833.33}{0.776169} \\approx 1{,}073.64 \\]<\/p>\n<p><strong>Result:<\/strong> the monthly payment is <strong>$1,073.64<\/strong>. Over 360 payments, the total payment is <strong>$386,510.40<\/strong>, of which <strong>$186,510.40<\/strong> is interest \u2014 you can reproduce these numbers with the calculator's default values.<\/p>\n<p>\n\r\n<\/section>\n<h2>How to Use the Loan Calculator<\/h2>\n<ol>\n<li>Enter the <strong>Loan Amount (P)<\/strong> \u2014 the principal you plan to borrow, in dollars.<\/li>\n<li>Enter the <strong>Annual Interest Rate<\/strong> as a percentage (for example, enter 5 for 5%, or 5.25 for 5.25%).<\/li>\n<li>Enter the <strong>Loan Term (years)<\/strong> \u2014 the number of years over which you will repay the loan.<\/li>\n<li>Read the results: the calculator shows the <strong>Monthly Payment<\/strong>, the <strong>Total Payment<\/strong> (principal plus all interest), and the <strong>Total Interest<\/strong> you will pay over the life of the loan.<\/li>\n<\/ol>\n<h2>What Is an Amortizing Loan?<\/h2>\n<p>Most consumer loans \u2014 mortgages, auto loans, personal loans, and student loans \u2014 are <em>amortizing<\/em> loans. You make identical payments every month, but the split between interest and principal changes over time. Early in the loan, when the outstanding balance is largest, most of each payment covers interest. As the balance shrinks, a growing share of the payment goes toward principal, until the debt is fully repaid in the final month.<\/p>\n<p>The monthly payment calculated above stays constant for the entire term (assuming a fixed interest rate). That predictability is what makes amortizing loans easy to budget around: you know exactly what leaves your bank account each month.<\/p>\n<p>The <strong>Total Interest<\/strong> figure is often the most eye-opening result. In the default example, a $200,000 loan at 5% for 30 years costs over $186,000 in interest \u2014 nearly as much as the principal itself. Shortening the term or securing a lower rate dramatically reduces this figure, which is why comparing loan offers matters so much.<\/p>\n<h2>How to Interpret the Results<\/h2>\n<p>Use the monthly payment to check affordability: a common guideline is that total debt payments should stay below roughly a third of your gross monthly income. The total interest tells you the true cost of borrowing, not just the sticker price of what you are financing.<\/p>\n<p>Experiment with the inputs to see cause and effect. Doubling the term lowers the monthly payment but can more than double the total interest. Even a 0.5% difference in the interest rate can shift the total cost by thousands of dollars over a long loan.<\/p>\n<h2>Assumptions and Limitations<\/h2>\n<ul>\n<li><strong>Fixed rate only.<\/strong> The calculator assumes the interest rate never changes. Variable-rate loans (ARMs, some private student loans) will have different payments once the rate adjusts.<\/li>\n<li><strong>No fees included.<\/strong> Origination fees, closing costs, points, and insurance are not part of the result. For mortgages, property taxes and homeowners insurance are typically added on top \u2014 see the <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-calculator\/\">Mortgage Calculator<\/a> for a fuller picture, or the <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-apr\/\">Mortgage APR Calculator<\/a> to compare rates with fees included.<\/li>\n<li><strong>Monthly compounding.<\/strong> The formula converts the annual rate to a monthly rate by dividing by 12, which matches how most consumer loans in the US accrue interest.<\/li>\n<li><strong>No extra payments.<\/strong> The result assumes you pay exactly the scheduled amount every month. Paying extra toward principal shortens the loan and cuts total interest (watch out for a possible <a href=\"https:\/\/wpcalc.com\/en\/finance\/pre-payment-penalty\/\">pre-payment penalty<\/a>).<\/li>\n<\/ul>\n<h2>Practical Tips<\/h2>\n<ul>\n<li>Run the numbers for several terms (15 vs. 30 years for a mortgage, 36 vs. 60 months for a car) to find the balance between an affordable payment and total cost.<\/li>\n<li>For vehicle financing specifically, the <a href=\"https:\/\/wpcalc.com\/en\/finance\/auto-loan-calculator\/\">Auto Loan Calculator<\/a> lets you fine-tune the same trade-off.<\/li>\n<li>Before committing, use the result to negotiate: knowing your exact payment at a given rate makes it easier to compare lender offers on equal terms.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Estimate your monthly loan payment, total payment, and total interest. Enter the loan amount, annual interest rate, and term in years to see the full cost of the loan.<\/p>\n","protected":false},"author":70,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[30],"class_list":["post-56678","post","type-post","status-publish","format-standard","hentry","category-finance","tag-mortgage"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/56678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=56678"}],"version-history":[{"count":3,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/56678\/revisions"}],"predecessor-version":[{"id":66123,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/56678\/revisions\/66123"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=56678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=56678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=56678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}