Our intuitive Loan Calculator helps you easily compute your monthly loan repayments, the total interest accrued, and the entire cost of your loan. Perfect for prospective homeowners, car buyers, or anyone planning personal financing. Gain clarity on your financial commitments.
Formula:
The standard formula for calculating the monthly loan payment (M) is derived from the annuity formula:
M = P [ i(1 + i)n ] / [ (1 + i)n – 1]
Where:
- P = Principal Loan Amount (the initial amount borrowed)
- i = Monthly Interest Rate (Annual Interest Rate / 12 / 100)
- n = Total Number of Payments (Loan Term in Years × 12)
- M = Monthly Payment
Additionally:
- Total Interest Paid = (M × n) - P
- Total Cost of Loan = M × n (Principal + Total Interest)