Bank Loan Calculator
Calculate your monthly loan payments, total interest, and total payment based on loan amount, interest rate, and term.
Published by:
isCalculator Editorial Team
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How to use this tool?
This calculator estimates your monthly loan payments using the standard amortization formula. Follow these steps:
- Enter Loan Amount ($) – Type the total amount you want to borrow (e.g., 10000). Must be a positive number.
- Enter Annual Interest Rate (%) – Input the yearly interest rate (e.g., 5 for 5%). Use decimals for partial rates (e.g., 4.5).
- Enter Loan Term (Years) – Specify the repayment period in whole years (minimum 1).
- Click "Calculate" – Press the button or hit Enter in any field to see results.
Outputs explained:
- Monthly Payment – Fixed amount due each month.
- Total Interest – Total cost of borrowing over the loan term.
- Total Payment – Sum of all monthly payments (principal + interest).
Note: All values are in US dollars. The calculator assumes equal monthly payments and a fixed interest rate.
Previous Results
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Frequently Asked Questions
The monthly payment is calculated using the formula M = P [ i(1+i)^n ] / [ (1+i)^n - 1 ], where P is the loan amount, i is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments.
If the interest rate is 0%, the monthly payment is simply the loan amount divided by the number of months, and total interest is zero.
Yes, this calculator works for any fixed-rate loan, such as personal loans, auto loans, or mortgages, as long as the payments are made monthly.
