Loans & savings
Loan Calculator
This works for any fixed-rate loan that's paid back in equal monthly payments: personal loans, student loans, car loans and business loans. Enter the amount you're borrowing, the yearly interest rate and how long you have to repay it.
Your result will appear here.
How it's calculated
Each payment is the same size. Early on most of it goes to interest; later most of it goes to the balance. The payment is found with the annuity formula, using the monthly rate r (yearly rate ÷ 12) and the number of payments n.
Total interest is simply all the payments added up, minus the amount you borrowed.
Payment = P × r ÷ (1 − (1 + r)^−n)
How to do it in Excel
=PMT(8%/12, 5*12, -25000)- Returns 506.91, the monthly payment for the default example.
=PMT(8%/12, 5*12, -25000)*60 - 25000- Total interest paid over the 60 months.