Loan / Amortization

Work out the monthly payment on any fixed-rate loan and see how much interest you'll pay over its life. Enter the amount borrowed, the APR and the term in years — the math runs on your device, so your numbers stay private.

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💡 Good to know: Early loan payments are mostly interest — you barely dent the principal for the first years. That's amortization.

Worked example

Monthly: $489.15 · Total interest: $4,349.22 · Total paid: $29,349.22

How it’s solved

Worked on the example above, step by step — follow along and you can do it on paper next time, no tool required.

A fixed loan is repaid in equal monthly installments; the amortization formula finds the exact payment that clears the balance over the term.
Monthly rate = APR ÷ 100 ÷ 12
6.5 ÷ 100 ÷ 12 = 0.005417
Number of payments = years × 12
5 × 12 = 60
Payment = principal × r ÷ (1 − (1 + r)^(−n))
$25,000.00 × 0.005417 ÷ (1 − (1 + 0.005417)^(−60)) = $489.15
Total paid = payment × months; the interest is the rest
$489.15 × 60 = $29,349.22 (interest $4,349.22)

Learn the method

Inputs

Amount $
25000
APR %
6.5
Years
5

Frequently asked

How is the monthly payment calculated?

It uses the standard amortization formula: payment = principal × r / (1 − (1 + r)⁻ⁿ), where r is the monthly rate and n is the number of months.

What if the APR is 0%?

With no interest the payment is simply the amount divided by the number of months, and total interest is zero.