Loan Interest Calculator
Calculate total interest costs and see payment breakdowns for any loan. Compare different scenarios to make informed borrowing decisions.
Loan Summary
Monthly Payment
$0
Total Interest
$0
Total Payment
$0
Payment Analysis
About The Calculator
Our loan interest calculator helps you understand the true cost of borrowing by showing you both the total interest paid and how your monthly payments are split between principal and interest.
How Loan Interest Works
Loan interest is calculated based on your principal amount, interest rate, and loan term. Using amortization, your monthly payment remains constant while the proportion of principal to interest changes over time.
Key Features
- Calculate total interest costs
- See monthly payment breakdowns
- Compare different loan scenarios
- Visualize cost distribution
- Understand amortization impact
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Tuomas J.
Financial Calculator Expert
Creating precise financial calculators to help you make better money decisions.
Frequently Asked Questions
Loan interest is calculated based on your principal amount, interest rate, and loan term. The interest can be simple (calculated only on principal) or compound (calculated on principal and accumulated interest).
Several factors influence your loan interest rate, including credit score, loan term length, loan amount, market conditions, loan type, and the lender's policies.
You can reduce loan interest costs by making larger down payments, choosing shorter loan terms, improving your credit score, making extra payments, or refinancing to a lower rate.
The interest rate is the basic cost of borrowing, while APR (Annual Percentage Rate) includes both the interest rate and other loan costs like fees and points.