2019 Loan Calculator Free Money
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Reviewed by Calculator Editorial Team
This 2019 loan calculator helps you estimate monthly payments, total interest, and loan amortization for personal loans, mortgages, and other types of loans. Simply enter your loan amount, interest rate, and term to get instant results.
How to Use This Loan Calculator
Using our loan calculator is simple:
- Enter the loan amount you need (e.g., $20,000)
- Input the annual interest rate (e.g., 5.5%)
- Select the loan term in years (e.g., 5 years)
- Click "Calculate" to see your monthly payment and other details
The calculator will show you:
- Monthly payment amount
- Total interest paid over the loan term
- Total amount repaid (principal + interest)
- Amortization schedule (optional)
Loan Calculation Formula
The monthly payment for a loan is calculated using the following formula:
M = P [ i(1 + i)n ] / [ (1 + i)n - 1 ]
Where:
- M = Monthly payment
- P = Principal loan amount
- i = Monthly interest rate (annual rate divided by 12)
- n = Number of payments (loan term in years × 12)
This formula uses the standard amortization method where equal payments are made each month, including both principal and interest.
Example Calculation
Let's calculate a $20,000 loan with a 5.5% annual interest rate over 5 years (60 months):
- Convert annual rate to monthly: 5.5% ÷ 12 = 0.4583% or 0.004583 in decimal
- Calculate the monthly payment using the formula:
M = 20000 [ 0.004583(1 + 0.004583)60 ] / [ (1 + 0.004583)60 - 1 ]
M ≈ $389.74 per month
- Total interest paid: $389.74 × 60 - $20,000 = $7,772.40
- Total amount repaid: $20,000 + $7,772.40 = $27,772.40
This example shows that over 5 years, you would pay $389.74 per month, with $7,772.40 going to interest.
Different Types of Loans
There are several types of loans this calculator can help with:
| Loan Type | Typical Use | Interest Rate Range |
|---|---|---|
| Personal Loan | Debt consolidation, home improvement, medical expenses | 5-20% |
| Mortgage Loan | Home purchase | 3-7% |
| Auto Loan | Car purchase | 4-12% |
| Student Loan | Education expenses | 4-8% |
Interest rates can vary significantly based on your credit score, loan term, and market conditions. Always compare multiple lenders for the best rates.
Frequently Asked Questions
What is the difference between APR and interest rate?
APR (Annual Percentage Rate) includes all fees and costs associated with borrowing, while the interest rate is just the cost of borrowing. APR is always higher than the interest rate.
How does loan term affect my monthly payment?
A longer loan term means lower monthly payments but more total interest paid. A shorter term means higher monthly payments but less total interest. Choose based on your financial situation.
Can I pay extra toward my loan?
Yes, paying extra principal reduces the principal balance faster and lowers total interest. Our calculator can show you how extra payments affect your loan.