Loan Calculator
Step 1: Loan Amount
Step 2: Interest Rate
Step 3: Loan Term
Loan Payment Summary
Monthly Payment:
$0.00
About Our Loan Calculator
Welcome to Utilify's Loan Calculator - your go-to tool for understanding the true cost of borrowing. Whether you're planning to take out a mortgage, auto loan, or personal loan, our calculator helps you make informed decisions by showing you exactly what you'll pay.
This calculator uses the standard loan amortization formula to calculate monthly payments and total costs, taking into account the loan amount, interest rate, and term length.
Understanding Loan Calculations
Our loan calculator helps you understand three key aspects of any loan:
- Monthly Payments: The fixed amount you'll need to pay each month.
- Total Interest: The total amount you'll pay in interest over the life of the loan.
- Total Cost: The complete cost of the loan, including both principal and interest.
Frequently Asked Questions
How are monthly payments calculated?
Monthly payments are calculated using the loan amortization formula: PMT = P[r(1+r)^n]/[(1+r)^n-1], where P is principal, r is monthly interest rate, and n is total number of months.
Why does a longer term mean more total interest?
While longer terms mean lower monthly payments, you'll pay more in total interest because you're borrowing the money for a longer period. This calculator helps you see this trade-off clearly.
Can I calculate payments for partial years?
Yes! You can enter decimal values for the loan term. For example, 2.5 years equals 30 months.
Does this include taxes and insurance?
No, this calculator shows only principal and interest payments. For mortgages, you'll need to add property taxes, insurance, and any other fees separately.