Vertoq
Loan Cost Calculator
Enter the loan amount, interest rate, and term to see your monthly payment and total cost.
What a loan actually costs
A fixed-rate loan with equal monthly payments (an amortizing loan) costs more than the amount you borrow, because every payment contains both interest and principal. This calculator works out your actual monthly payment and what you pay in total over the full term, interest included.
The formula
The monthly payment is calculated with the standard amortization formula:
M = P × r × (1+r)^n / ((1+r)^n − 1)
P is the loan amount, r is the monthly interest rate (annual rate divided by 12 and by 100), and n is the number of monthly payments. The formula produces a level monthly payment across the whole term.
How payments are split over time
Even though the monthly payment stays the same, the split between interest and principal changes. Early payments are mostly interest, because interest is calculated on the remaining balance, which is largest at the start. As the balance shrinks, a growing share of each payment goes toward principal instead.
What affects your rate
The rate you're actually offered depends on several factors: credit score, down payment size, loan term, and whether the rate is fixed or adjustable. These are factual factors that influence your real rate, not financial advice about which choice is right for you.
Limitations
This calculator shows the pure loan cost based on amount, rate, and term. It doesn't account for fees, insurance, taxes, or other local costs that may apply depending on where you live and what type of loan it is. Treat the result as an estimate of the interest and principal cost itself, not the complete total cost.
Frequently asked questions
How is the monthly payment calculated?
Using the standard loan amortization formula, which gives an even monthly payment where the interest portion decreases and the principal portion increases over time.
How is this different from the savings calculator?
The savings calculator shows how a saved amount grows. This calculator shows what a loan or installment purchase actually costs you in total.
Does the total cost include fees and insurance?
No, the calculator only shows the interest and principal cost based on amount, rate, and term. Fees, insurance, and taxes vary too much between lenders and countries to include as a general figure.