Know before you borrow
Loan calculator
Your monthly payment, the loan's total cost, and how much of it is interest.
Monthly payment
$1,036.38
for 120 months
Total cost of loan
—
Total interest paid
—
How it's calculated
Uses the standard amortization formula: monthly payment = r·P·(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount borrowed, r the monthly interest rate (annual rate ÷ 12), and n the number of monthly payments.
Understanding your monthly payment
A fixed-rate loan is repaid in equal monthly installments. Early payments are mostly interest; later payments are mostly principal — that schedule is called amortization. The three levers are the amount borrowed, the interest rate, and the term: a longer term lowers the monthly payment but increases the total interest you pay over the life of the loan.
Frequently asked questions
How can I lower my monthly payment?
Borrow less, find a lower rate, or extend the term. Note that stretching the term raises the total interest paid — compare the Total interest figure between scenarios before deciding.
Does this include taxes and fees?
No — it computes principal and interest only. Origination fees, insurance, and taxes vary by lender and are not part of the amortization formula.
What interest rate should I enter?
Use the annual rate (APR) quoted by your lender. The calculator converts it to a monthly rate internally by dividing by 12.