# Loan Calculator

> Calculate loan payments, interest, repayment, and payoff schedule.

Page: https://freecalculator.tech/tools/loan-calculator

## How do I calculate a loan payment?

A fixed-rate loan payment is the amount borrowed times the monthly rate, divided by one minus the compounded discount factor for the number of payments.

## Formula

For interest-bearing loans, payment uses the standard fixed-payment amortization formula. At 0% interest, payment is principal ÷ months.

- For interest-bearing loans, payment uses the standard fixed-payment amortization formula. At 0% interest, payment is principal ÷ months.
- Inputs used: Loan amount, Annual interest rate, Duration, Extra monthly payment.
- Edge handling: Loan amount is required.; Loan amount cannot be negative.; Loan amount must be no more than 1000000000000.; Annual interest rate is required.; Annual interest rate cannot be negative..

## Inputs

- Loan amount
- Annual interest rate
- Duration
- Extra monthly payment

## Worked example: $20,000 five-year loan

Estimate payments on $20,000 at 7% for five years.
1. Start with Loan amount: 20000, Annual interest rate: 7, Duration: 5, Extra monthly payment: 0.
2. Apply the method: For interest-bearing loans, payment uses the standard fixed-payment amortization formula. At 0% interest, payment is principal ÷ months.
3. Estimate payments on $20,000 at 7% for five years.

## Common questions

### How do I calculate a loan payment?

A fixed-rate loan payment is the amount borrowed times the monthly rate, divided by one minus the compounded discount factor for the number of payments. Check the formula, example, and limitations on this page before using the result for a real finance decision.

### Does zero interest work?

Yes. Principal is divided evenly across the selected months.

### What does extra payment do?

It shortens payoff and reduces interest when applied to principal. Check the formula, example, and limitations on this page before using the result for a real finance decision.

### Is this an EMI calculator?

Yes. EMI (equated monthly installment) is the fixed monthly payment on a loan, and this page uses the same fixed-payment amortization formula. Enter the loan amount, annual rate and term in years to get your EMI and total interest.

### Can I use this as an amortization calculator?

Yes. Each payment is split into interest on the remaining balance and principal repayment, which is what an amortization schedule shows. Add an extra monthly payment to see how it shortens the schedule.

### How do I use the Loan Calculator?

Enter the required values for Loan amount, Annual interest rate, Duration, Extra monthly payment. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

## Limitations and assumptions

- Results are estimates for informational purposes only and are not financial advice.
- Inputs outside the supported range are rejected rather than forced into a result.
- The result depends on the values you enter for this loan calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Cite this page

- APA: Free Calculator. (n.d.). Loan Calculator. https://freecalculator.tech/tools/loan-calculator
- MLA: "Loan Calculator." Free Calculator, https://freecalculator.tech/tools/loan-calculator.
- Link: Loan Calculator — Free Calculator, https://freecalculator.tech/tools/loan-calculator