Loan Account Calculator
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Reviewed by Calculator Editorial Team
Use our loan account calculator to determine monthly payments, total interest paid, and loan payoff time. Understand how different loan terms affect your budget and financial planning.
How to Use This Calculator
Enter your loan amount, interest rate, and loan term to calculate your monthly payments. The calculator shows:
- Monthly payment amount
- Total interest paid over the loan term
- Total amount paid (principal + interest)
- Loan payoff date
Adjust the inputs to see how changes affect your payments. The calculator uses standard amortization formulas for accurate results.
Formula Explained
The loan payment calculation uses the standard amortization formula:
Monthly Payment = P × (r(1 + r)n)/( (1 + r)n - 1)
Where:
- P = Loan principal amount
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Number of payments (loan term in years × 12)
Total interest is calculated by subtracting the loan amount from the total amount paid.
Worked Example
For a $200,000 loan at 4.5% annual interest for 30 years:
- Monthly interest rate = 4.5% ÷ 12 = 0.375%
- Number of payments = 30 × 12 = 360
- Monthly payment = $200,000 × (0.00375(1 + 0.00375)360)/( (1 + 0.00375)360 - 1) ≈ $1,123.64
- Total amount paid = $1,123.64 × 360 ≈ $404,510.40
- Total interest = $404,510.40 - $200,000 = $204,510.40
This example shows how a 30-year mortgage would cost $1,123.64 per month with $204,510.40 in total interest.
Frequently Asked Questions
How accurate is this loan calculator?
This calculator uses standard amortization formulas and provides accurate results based on the inputs you provide. For precise financial planning, consult with a mortgage professional.
What is the difference between APR and interest rate?
APR (Annual Percentage Rate) includes all fees and costs, while the interest rate is the actual borrowing cost. APR is typically higher than the interest rate.
Can I adjust the payment frequency?
This calculator shows monthly payments. For different payment frequencies, you would need to adjust the interest rate and term accordingly.
What if I make extra payments?
Extra payments reduce the principal balance faster and lower total interest. Use our extra payment calculator to see the impact of additional payments.