# Loan Calculator

URL: https://speedycalculator.com/calculators/finance/loan/
Last updated: 2026-10-25

> The loan calculator works out the payment for any loan – any payment frequency and compounding – plus the total interest, the money you actually receive after prepaid fees, and the real APR including fees.

## Inputs

- Loan amount
- Interest rate (%)
- Compounding frequency
- Loan term (years, months)
- Payment frequency
- Prepaid fees (deducted from the loan)
- Fees added to the loan

## Results

- Number of payments
- Payment per period
- Amount received
- Total interest
- Finance charge (interest + fees)
- Total of payments
- Real APR (with fees)
- Effective annual rate

## Formula

```
Rate per payment i = (1 + r ÷ m)^(m ÷ p) − 1
Payment = (L + financed fees) × i ÷ (1 − (1 + i)^−n)
APR = rate at which (L − prepaid fees) equals the present value of the payments
```

## Explanation

Comparing loans by payment alone hides the true cost. Fees taken from the loan (origination fees, points) mean you receive less than you borrow, which raises the effective APR.

### How to use the Loan Calculator

- **Loan amount**
- **Interest rate**
- **Compounding frequency**
- **Loan term**
- **Payment frequency**
- **Prepaid fees (deducted from the loan)**
- **Fees added to the loan**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the loan amount, interest rate, compounding, term, payment frequency and any fees.

### Tips

- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.

### Common mistakes to avoid

- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.

### Inputs explained

FieldWhat to enterLoan amountAmount in your currencyInterest rateIn %Compounding frequencyChoose one: Yearly, Semi-annually, Quarterly, Monthly …Loan termUnits: years, monthsPayment frequencyChoose one: Monthly, Semi-monthly, Bi-weekly, Weekly …Prepaid fees (deducted from the loan)Amount in your currencyFees added to the loanAmount in your currency

### What each result means

- **Number of payments** = round([Loan term]×[Payment frequency])
- **Payment per period** = pmt([Rate per payment], [Number of payments], [Loan amount] + [Fees added to the loan])
- **Amount received** = [Loan amount] - [Prepaid fees (deducted from the loan)]
- **Total interest** = [Payment per period]×[Number of payments] - [Loan amount] - [Fees added to the loan]
- **Finance charge (interest + fees)** = [Payment per period]×[Number of payments] - [Loan amount] + [Prepaid fees (deducted from the loan)]
- **Total of payments** = [Payment per period]×[Number of payments]
- **Real APR (with fees)** = rate([Number of payments], 0 - [Payment per period], [Loan amount] - [Prepaid fees (deducted from the loan)])×[Payment frequency]×100
- **Effective annual rate** = ((1 + rate([Number of payments], 0 - [Payment per period], [Loan amount] - [Prepaid fees (deducted from the loan)]))^[Payment frequency] - 1)×100

### Example values

How the main result changes when **Loan amount** changes and everything else stays at the example values above:

Loan amountPayment per period10,000202.7615,000304.1520,000405.5325,000506.9130,000608.2940,000811.06

## Worked example

Inputs — Loan amount: $20,000; Interest rate: 8 %; Compounding frequency: Monthly; Loan term: 5 years; Payment frequency: Monthly; Prepaid fees (deducted from the loan): $400; Fees added to the loan: $0.

Results — Number of payments = 60; **Payment per period = $405.53**; Amount received = $19,600.00; Total interest = $4,331.67; Finance charge (interest + fees) = $4,731.67; Total of payments = $24,331.67; Real APR (with fees) = 8.859 %; Effective annual rate = 9.228 %.

## FAQ

**How is a loan payment calculated?**
With the annuity formula using the rate per payment period.

**What is the finance charge?**
All interest and fees you pay for the loan.

**Why is the APR higher than the interest rate?**
Fees reduce the money you receive, increasing the true cost.

**What formula does the Loan Calculator use?**
Rate per payment i = (1 + r ÷ m)^(m ÷ p) − 1.


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)