How loan payments are calculated
M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1) — the standard amortization formula, where r is the monthly rate and n the number of payments. Extra monthly payments go straight to principal, shortening the payoff and cutting total interest.
FAQ
APR vs interest rate?
APR includes fees and is the truer cost of borrowing. Enter your APR here for the most accurate picture.
Buying a car or home?
Use the dedicated Auto Loan Calculator (handles trade-in and sales tax) or Mortgage Calculator (taxes, insurance, PMI).