AstraCalculator

Loan Calculator

Enter the amount, the rate and the term. This gives you the monthly payment and, more usefully, what the loan costs you in interest over its life.

$
% per year
years
$

Anything paid above the required payment goes straight against the balance.

How the math works

Payment = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the amount borrowed, r is the yearly rate divided by 12, and n is the number of monthly payments. Total interest is simply the payment x n, less the amount borrowed.

Common questions

How is a monthly loan payment worked out?
From three numbers: the amount, the monthly interest rate and the number of payments. The formula spreads the balance so that the last payment lands exactly on zero, which is why early payments are mostly interest and later ones mostly principal.
Does paying extra each month really help?
A great deal, because every extra dollar comes off the balance rather than the interest. On a five year loan at 7.5 percent, even 100 dollars a month typically ends it close to a year early.
What is APR, and is it the same as the interest rate?
No. APR includes fees rolled into the loan, so it is usually a little higher than the quoted rate. Compare offers on APR, and enter the plain interest rate here.

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