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Loan Calculator

Calculate monthly payment, total interest, total repayment, fees, and amortization summary.

Optional. Fixed fees are added directly; percentage fees are based on loan amount.

Reserved for future extra-payment payoff logic. It is not applied in this MVP.

Status: initial

Results

Awaiting calculation

Borrowing guide

Introduction

A loan calculator helps borrowers estimate monthly payments, total interest, total repayment, fees, and borrowing cost before taking a loan. It is useful for personal loans, car loans, education loans, business loans, equipment loans, and comparing offers.

Purpose

Use this calculator to estimate an amortizing loan payment with a fixed annual interest rate and fixed term. Optional fees are included in total cost, while extra payment logic is reserved for a future extension.

Loan payment formula

The calculator uses the standard amortizing payment formula. For zero-interest loans, it divides principal by the number of months.

Variable explanations

Loan amount

The principal borrowed before interest and fees.

Interest rate

The annual rate used to calculate monthly interest.

Loan term

The repayment duration in years or months.

Monthly payment

The estimated fixed payment due each month.

Total interest

The borrowing cost paid above the principal.

Fees

Optional fixed or percentage charges added to total cost.

Amortization

A breakdown of payment, principal, interest, and remaining balance.

Formula guide

Monthly payment

Payment = P x r x (1 + r)^n / ((1 + r)^n - 1)

  • P is loan principal.
  • r is monthly interest rate.
  • n is number of monthly payments.

This formula finds the fixed monthly payment required to repay principal and interest over the term.

Zero-interest loan

Payment = principal / number of months

  • Used when annual interest rate is 0%.

Without interest, each payment repays an equal portion of principal.

Total repayment

Total repayment = monthly payment x number of months

  • This excludes optional fees.

Total repayment is the sum of scheduled loan payments.

Total interest

Total interest = total repayment - principal

  • Principal is subtracted from repayment to isolate borrowing cost.

This shows the interest paid over the full term.

Total cost including fees

Total cost = total repayment + fees

  • Fees can be fixed or a percentage of loan amount.

Fees are added separately so users can see repayment and total cost.

Real-world examples

Monthly payment example

  1. Enter loan amount as 5,00,000.
  2. Enter annual rate as 10%.
  3. Enter 5 years to estimate the monthly payment and total interest.

Personal loan

  1. Enter the personal loan offer.
  2. Add processing fees if known.
  3. Compare monthly payment with your budget.

Car loan

  1. Enter vehicle loan amount.
  2. Use the bank's annual rate.
  3. Review total repayment before choosing tenure.

Education loan

  1. Enter the borrowed amount.
  2. Use the repayment term.
  3. Check total interest over the full duration.

Business loan

  1. Enter working-capital loan amount.
  2. Add fixed or percentage fees.
  3. Estimate total cost including charges.

Equipment loan

  1. Enter equipment finance amount.
  2. Choose term in months.
  3. Review amortization summary by year.

Short-term borrowing

  1. Use months for short terms.
  2. Check zero-interest offers carefully.
  3. Add any upfront fees to total cost.

Comparing two offers

  1. Run each offer separately.
  2. Compare monthly payment and total interest.
  3. Include fees for a more realistic cost comparison.

Common loan calculation mistakes

Ignoring fees

Processing or origination fees can increase the real borrowing cost.

Choosing a longer term only for lower payment

Longer terms can reduce monthly payment but increase total interest.

Confusing loan amount and total repayment

Loan amount is the borrowed principal; total repayment includes interest.

Comparing rates without tenure

The same rate can have very different total cost over different terms.

Expecting extra payment payoff logic

Extra monthly payment is a placeholder in this MVP and does not change the payoff schedule.

FAQs

What is a loan calculator?
A loan calculator estimates monthly payment, total interest, total repayment, fees, and amortization for a fixed-rate loan.
What formula does this calculator use?
It uses the standard amortizing loan payment formula: P x r x (1 + r)^n / ((1 + r)^n - 1).
How is monthly payment calculated?
The annual rate is converted to a monthly rate, then applied across the number of monthly payments.
How are zero-interest loans handled?
The calculator divides loan amount by the number of months.
What is total interest?
Total interest is total repayment minus the loan amount.
What is total repayment?
Total repayment is monthly payment multiplied by the number of months.
Are fees included?
Fees are shown separately and included in total cost including fees.
Can fees be a percentage?
Yes. Percentage fees are calculated on the loan amount.
Can fees be fixed?
Yes. Fixed fees are added directly.
Does extra monthly payment change payoff?
No. Extra payment is reserved as a future extension placeholder.
What is amortization?
Amortization shows how each payment is split between principal and interest while the balance declines.
Why does tenure affect total interest?
Longer tenure usually means more months of interest, even if monthly payment is lower.
Is this the same as an EMI calculator?
It uses the same core payment idea, but this page focuses on loan cost, fees, and amortization.
Does this include taxes or insurance?
No. It excludes taxes, insurance, penalties, and changing interest rates.
Is this financial advice?
No. It is an educational estimate; actual loan terms depend on the lender.

References

Related calculators

Last updated and version history

Last updated: 2026-07-03

  • 1.0.0 (2026-07-03): Initial CAL-0010 Loan Calculator implementation using platform engines.