Calculate your estimated loan interest, payment, total repayment cost, and amortization schedule.
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Loan Interest Calculator — Calculate how much interest you may pay on a loan and see your estimated payment, total repayment cost, principal, and amortization schedule. Enter your loan amount, interest rate, and repayment term to estimate the cost of borrowing.
A loan interest calculator estimates the amount of interest that accumulates while you repay a loan.
For a standard fixed-rate amortizing loan, each scheduled payment contains a portion that goes toward principal and a portion that covers interest. The interest portion is generally based on the outstanding loan balance.
As the principal balance decreases, the amount of interest charged during each subsequent payment period generally decreases as well.
By entering the loan amount, interest rate, loan term, and payment frequency, you can estimate both the periodic payment and the total interest paid over the life of the loan.
To calculate estimated loan interest, enter the following information:
You can change the values to compare different financing scenarios and see how the interest cost changes.
The amount of interest you pay depends primarily on the loan amount, interest rate, repayment term, and payment schedule.
For example, borrowing a larger amount generally results in more interest when the other loan terms remain the same. A higher interest rate can also increase the total financing cost.
The repayment term is another important factor. A longer term can reduce the periodic payment while potentially increasing the total amount of interest paid because the balance remains outstanding for a longer period.
For a standard fixed-rate amortizing loan, the periodic payment can be calculated using:
Once the scheduled payments are calculated, the total interest can be estimated by adding the interest portion of each payment over the full repayment period.
For a zero-interest loan, the interest cost is zero and the payment is simply the principal divided by the number of payments.
Imagine borrowing $25,000 at an annual interest rate of 7.5% for 5 years with monthly payments.
The calculator can estimate the monthly payment and add the interest charged throughout the repayment schedule to determine the estimated total interest.
You can then change the interest rate or loan term to see how those changes affect the total cost of borrowing.
The principal amount directly affects the potential interest cost. If two loans have the same rate and term, the larger loan will generally generate more interest.
The interest rate determines how much interest is charged on the outstanding balance. A higher rate generally increases both the periodic payment and total interest on a standard amortizing loan.
The loan term determines how long the balance is scheduled to remain outstanding. A longer term can result in more interest being paid over the life of the loan.
The timing and frequency of payments can affect how quickly the balance is reduced and how interest is calculated. This calculator allows you to compare monthly, biweekly, and weekly payment schedules.
Total interest and total loan cost are related but different measurements.
Total interest represents the estimated interest paid over the repayment period.
Total loan cost in this calculator represents the original principal plus the estimated interest.
Actual borrowing costs can be higher when a loan includes additional fees or charges that are not part of the basic principal-and-interest calculation.
An amortization schedule shows exactly how a loan payment is divided between principal and interest over time.
During the early part of a typical amortizing loan, the outstanding balance is higher, so the interest portion of each payment can represent a larger share of the payment.
As principal is repaid, the outstanding balance decreases and the interest portion generally becomes smaller.
The amortization schedule on this page allows you to examine the estimated interest and principal for every payment.
A longer loan term can reduce the required payment because the balance is spread across more payment periods.
However, interest can continue to accrue over the additional periods. As a result, the total interest paid can be greater than it would be with a shorter term.
This is one reason it is useful to compare both the payment and total interest when evaluating loan terms.
Generally, yes. If the loan amount and repayment term remain the same, a higher interest rate typically results in more interest being charged over the life of a standard amortizing loan.
Even relatively small differences in interest rates can affect the total financing cost when a loan is repaid over several years.
Several factors can affect the total interest cost of a loan.
Whether a particular strategy is appropriate depends on your financial circumstances and the terms of the available loan.
Not every financing product calculates interest in exactly the same way.
This calculator is designed primarily for standard fixed-rate amortizing loans, where scheduled payments reduce the principal balance over time.
Other products may use different interest calculations, including simple-interest structures, variable rates, interest-only periods, balloon payments, lines of credit, or other repayment methods.
For those products, the actual interest calculation can differ from the estimate produced here.
Interest rate and annual percentage rate, or APR, are related but are not always identical.
An interest rate generally describes the rate used to calculate interest on the outstanding balance. APR can incorporate certain borrowing costs in addition to the interest rate, depending on the loan and applicable rules.
When comparing actual loan offers, review the lender's disclosed rate, APR, fees, and repayment terms rather than relying on the interest rate alone.
This calculator estimates principal and interest for a standard amortizing loan.
Actual loans may include origination fees, application fees, closing costs, insurance, taxes, late fees, prepayment charges, or other costs depending on the lender and loan product.
Variable-rate loans, lines of credit, interest-only loans, balloon loans, and other specialized financing products may require different calculations.
A loan interest calculator estimates how much interest may be paid over the life of a loan based on the loan amount, interest rate, repayment term, and payment schedule.
For a standard amortizing loan, interest is calculated during each payment period based on the outstanding balance and applicable periodic interest rate. The total interest is the sum of the interest charged throughout the repayment schedule.
The answer depends on the interest rate and repayment term. Enter $10,000 into the calculator and test the rate and term you are considering.
The total interest depends on the interest rate, repayment period, and payment frequency. A $25,000 loan can have very different interest costs depending on those factors.
Often, yes. A longer term can mean the balance remains outstanding for a longer period, which can increase total interest even if the periodic payment is lower.
Generally, a lower interest rate reduces interest costs when the loan amount, repayment term, and other relevant terms remain comparable.
Principal is the amount borrowed. Interest is the cost charged for borrowing that money. A standard amortizing payment generally contains both principal and interest.
Yes. When the interest rate is 0%, the estimated total interest is zero and the loan amount is divided among the scheduled payments.
Yes. The amortization schedule shows the interest portion of each scheduled payment, allowing you to see how the interest amount changes as the balance declines.
The basic calculation focuses on principal and interest. Additional lender fees may not be included and should be reviewed separately when comparing actual loan offers.
The result is an estimate based on the assumptions entered. Actual lender calculations can differ because of payment timing, rounding, fees, rate changes, and the specific terms of the loan agreement.
Enter your loan amount, interest rate, repayment term, and payment frequency above to estimate the total interest and cost of your loan. Try several scenarios to see how changing the rate or term can affect your financing cost.
Disclaimer: This loan interest calculator is provided for informational and educational purposes only. Results are estimates and should not be considered financial, lending, legal, accounting, or tax advice. Actual interest charges, rates, fees, payment schedules, and loan terms vary by lender and loan product.