Loan Calculator

See what a loan will cost you per month and in total over the term, based on loan amount, nominal interest rate and number of years.

Monthly payment
$589
Amortizing loan, 5 years
Total interest
$5,350
Total paid
$35,350
Scenario: What happens at +1 percentage point interest?

At % interest, the monthly payment would be more per month than today.

How to use the loan calculator

  1. Enter how much you plan to borrow.
  2. Enter the nominal annual interest rate — you'll find this in your loan offer.
  3. Enter how many years you'll pay off the loan. The calculator shows the monthly payment and total cost.

How the loan is calculated

The calculator uses the amortization formula, the most common way lenders calculate fixed monthly payments. The formula ensures you pay the same amount every month throughout the term, even though the split between interest and principal changes along the way.

Monthly payment = L × r ÷ (1 − (1 + r)−n)
where L is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months.

At the start of the loan, a larger share of the payment goes toward interest, while the share going toward paying down the principal increases as the debt gets smaller.

Note: This is a simplified calculation without origination fees, other fees, or effective interest rate. The actual loan cost from your lender may differ somewhat.

Frequently asked questions

What's the difference between nominal and effective interest rate?

Nominal interest is the stated annual rate without fees. Effective interest also includes origination and other fees, giving a more accurate picture of the actual cost.

What's an amortizing loan?

An amortizing loan has the same total monthly payment throughout the term, but the split between interest and principal changes over time. This is the most common loan type for mortgages and personal loans.

Is it cheaper to pay off the loan faster?

Yes. A shorter term gives a higher monthly payment, but significantly lower total interest costs, since you pay interest for fewer months.