How this calculator works
Each monthly payment covers interest on the outstanding balance and pays down part of the principal. The payment stays level throughout the selected term. Total interest is all payments minus the original loan amount.
M = P × r / (1 − (1 + r)⁻ⁿ)P = starting amount; C = monthly contribution; G = target; r = monthly rate; n = months; y = years, where applicable.
Example you can check
A $12,000 loan at 0% over one year costs $1,000 per month and $0 in interest.
Assumptions & limitations
Fixed nominal interest rate, monthly payments and no additional fees or prepayments. Enter the contract interest rate, not an APR that includes fees. Actual lenders may round individual payments and adjust the final payment.
Common questions
Does this include origination fees?
No. Fees are excluded. Ask your lender for the complete cost of borrowing.
Can I use it for a variable-rate loan?
Only as a constant-rate scenario; future rate changes are not modeled.
Further reading: consumerfinance.gov educational guide. Our formula conventions and examples are described above.