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Loan Calculator

See the real cost of the loan before you sign for it.

Monthly payment, total interest, the true APR once origination fees are counted, your payoff date and a full amortization schedule. Auto, mortgage, personal and business loans.

Full Calculator - $20,000 Example - Fees, APR, Payoff Date WorkingExport, Reset, Copy

Enter details

Loan amount ($)

$

Interest rate APR (%)

%

Loan term (months)

mo

Start date

Extra monthly ($)

$

Origination fee options

How fee paid?

Fee type

Fee value

%

Fee amount

$600.00

Upfront = pay fee now, not in loan. Financed = fee added to principal, increases monthly payment and true APR.

Quick examples

Your loan estimate

$371.22

per month - $20,000 at 4.5% for 60 months

Monthly payment$371.22
Total principal$20,000.00
Total interest$2,273.20
Total loan payments$22,273.20
Origination fee$600.00 financed
Cost of loan$22,873.20
APR (with fees)4.72%
Payoff date11/2029
Principal 89.8%Interest 10.2%

M = P * r * (1+r)^n / ((1+r)^n - 1) = 20000 * 0.00375 * (1.00375)^60 / ((1.00375)^60 - 1) = $371.22

Extra payment impact

Extra per month$0
Interest saved$0 saved
Time saved0 months saved
New payoff60 months

How to cover a loan payment from the work you invoice

A loan payment is a bill you have already agreed to. These are the four numbers that tell you what it means for the work you take on and the invoices you send, all worked out from the figures above.

What you have to invoice every month

Start with the payment, then work back through the money that never reaches you. If the repayment is $384 and your net margin after materials, fuel and your own time is 20%, the loan alone needs $1,920 of invoiced work every month before anything else is covered.

Monthly repayment$384
Net margin on your work20%
Invoicing needed, just for the loan$1,920

Check the margin honestly rather than hopefully. The profit margin calculator does it per job.

The day rate that carries the debt

Divide the monthly figure by the days you actually bill, not the days you work. On sixteen billable days a month, that $1,920 is $120 a day of pure debt service, before wages, insurance or the van. Add it to your overhead line and it stops being invisible.

Once you know the number, put it in writing before the conversation starts. A written quote is what stops that rate being talked down on site three weeks later, when you have already turned other work away.

The ratio your lender will ask for

Debt service coverage ratio is your monthly profit divided by your monthly debt payments. Lenders want to see roughly 1.25, meaning you earn $1.25 for every $1 owed. Your issued invoices are the evidence: total them for a month, subtract costs, and divide by the payment this calculator gives you.

Consistent, numbered invoices with clear terms are what make that figure defensible when a lender asks for records. The invoice generator keeps the numbering sequential for you.

A term loan against invoice financing

If you are borrowing because clients pay late rather than because you need equipment, compare the two properly. Enter the loan here to get its APR with fees, then work out the annualised cost of factoring: a 3% fee to get paid 30 days early is roughly 36% a year, which usually makes the loan cheaper.

Cheaper still is being paid on time. Invoice the day the work finishes, put the due date on the page, and state the late fee before it is needed.

Amortization schedule, month by month

Every payment, split into what clears the debt and what the lender keeps. Useful for two things in particular: seeing the month your balance finally drops below what the asset is worth, and handing an accountant or a lender the whole term as a CSV.

MonthDatePaymentPrincipalInterestBalance

Long schedules show the first and last twelve months. The CSV export contains every row.

Watch the calculator fill itself in

The same panel you used above, playing back a $20,000 auto loan at 4.5% over 60 months with a 3% origination fee financed. Every figure on the right is worked out as the fields are typed.

Full calculator, $20,000 exampleExport, Reset, Copy

Your loan estimate

$0.00

per month

Monthly payment$0.00
Total principal$0.00
Total interest$0.00
Total loan payments$0.00
Origination fee$0.00
Cost of loan$0.00
APR (with fees)0.00%
Payoff date-
Principal 0% Interest 0%

M = P * r * (1+r)^n / ((1+r)^n - 1)

Extra payment impact

Extra per month$0
Interest saved$0 saved
Time saved0 months saved
New payoff0 months

Start with the amount you need to borrow

Jump to any part to replay it. The formulas behind these numbers are set out further down the page.

The repayment is fixed. The work that covers it is not.

A loan for a van, a mixer or a quiet quarter turns into the same number every month for years. That number has to come out of jobs you price properly, quote clearly and get paid for on time, which is what the rest of InvoiceTools is for.

1

Know the monthly number

Payment, total interest and the APR once fees are counted, so you know what the loan takes out of every month before you sign.

You are here
2

Price and quote the work

Put the repayment into your overhead, then quote at a price that carries it. A clear quote with a deposit and a valid-until date is what stops the margin slipping.

Open the Quote Generator
3

Invoice and get paid on time

Late payment is what turns a manageable repayment into a problem. Invoice the day the work is done, with terms and a due date on the page.

Open the Invoice Generator

Not sure the work covers it? The profit margin calculator checks a job before you commit, the quote generator puts the price in writing, and the invoice generator collects it. All free, all client-side.

Why use a loan calculator instead of the lender's quote?

Working out loan numbers in Excel or on a lender site can leave you guessing about fees, true APR, and actual payoff dates. Our calculator removes that guesswork, so you see full cost before signing.

Origination fees included

Choose if fee is paid upfront or rolled into your loan and see how it changes APR, monthly payment, and total cost. Example 3% on $20,000 financed adds $600 to principal.

Start date and payoff date

Pick exact start date and we calculate real payoff month and year. No more counting months manually. Example start Dec 2024 60 months ends Nov 2029.

Principal vs interest vs total

Compare total principal, total interest, total payments at a glance. See cost of loan including fees. Example $20,000 principal $2,273 interest $22,273 payments $22,873 cost with $600 fee.

Detailed amortization in browser

Access fully detailed schedule with principal, interest, payment, remaining balance for each month. No app install, mobile first, works on iPhone, Android, desktop.

Built for contractors, small business, freelancers, entrepreneurs, and anyone who needs transparency before signing.

Quick payment, affordability, APR and LTV calculators

4 shortcuts from full calculator above. Each answers one question in plain words. Enter loan amount, rate, term and see instant answer.

1

Monthly Payment → How Much Per Month?

Enter loan amount, annual interest rate, and months. We calculate monthly payment and total interest.

Full

Loan Amount

$

Rate APR

%

Term

months

Formula: Payment = P×r / [1 - (1+r)^-n] where r = APR/12/100

Payment: $371/mo | Total interest: $2,273

Example: $20,000 at 4.5% for 60 months = $371 per month, $2,273 total interest.

2

Target Payment → How Much Can You Afford?

Know monthly budget? Enter target payment, term, rate. We tell max loan you qualify for.

Math

Target Monthly

$

Term

months

Rate

%

Formula: Max loan = Payment × [1 - (1+r)^-n] / r

Max loan: $26,800

Example: $500/mo at 4.5% for 60 months = you can afford $26,800 loan.

3

Loan + Fee → True APR

Lender charges origination fee? Enter loan amount, fee, rate. We calculate true APR including fees.

APR

Loan Amount

$

Fee

$

Nominal Rate

%

APR includes interest + fees financed. Higher than nominal rate.

True APR: 9.64% vs nominal 5%

Example: $15,000 with $750 fee at 5% nominal = 9.64% true APR if fee financed.

4

Loan + Value → LTV %

Loan to Value. Enter loan amount and asset value. We calculate LTV percent lenders use.

LTV

Loan Amount

$

Asset Value

$

Formula: LTV = Loan ÷ Value × 100

LTV: 80% - 20% down payment needed

Example: $160k loan on $200k home = 80% LTV. Below 80% avoids PMI.

How to calculate a loan payment in seven steps

1

Enter loan amount

Input desired principal. Fine-tune it to match budget or sales price. Example $20,000 auto, $350,000 home, $10,000 personal.

2

Set interest rate APR

Use lender quoted APR. Calculator factors in compounding to show true cost. Example 4.5% auto, 6.5% home, 12% personal.

3

Choose loan term

Enter number of months loan will last. Example 60 months auto, 360 months home, 24 months personal. Longer term lower monthly but more total interest.

4

Select start date

Specify exact origination date. We compute payoff month accordingly. Example start Dec 2024 60 months payoff Nov 2029.

5

Configure origination fees

How will fees be paid? Choose Upfront or Deducted from loan. Fee type enter percentage example 5% or fixed amount example $500. See how fees alter APR, total loan payments, cost of credit.

6

Review your estimate

View monthly payment, total principal, total interest, total payments, origination fee, cost of loan, APR in one panel. Everything lands in one panel, so you can compare two lender offers side by side without re-entering anything.

7

Show amortization schedule

Expand schedule to see each month principal vs interest, monthly total, outstanding balance, and date. Early months interest heavy, later months principal heavy.

Loan payment examples: auto, mortgage, personal and business

Auto loan purchase

Loan $20,000 | Rate 4.5% APR | Term 60 months | Origination fee 3% financed
Monthly payment $371.22 | Total interest $2,273.20 | APR including fees 4.72%
Payoff date Nov 2029 | Cost of loan $22,873.20
Use this to compare dealer financing vs bank.

Home loan comparison

Loan $350,000 | Rate 6.5% APR | Term 360 months 30 years | Fee $1,000 upfront
Monthly payment $2,214.29 | Total interest $399,144.40 | APR with fees 6.57%
Payoff date Jul 2055 | Upfront fee does not increase monthly but increases cost.
Compare lender A no fee vs lender B low rate with fee.

Short term personal loan

Loan $10,000 | Rate 12% APR | Term 24 months | Fee 5% financed
Monthly payment $470.73 | Total interest $2,297.52 | APR including fees 13.15%
Payoff date Apr 2025 if started Apr 2023 | Financed fee adds $500 to principal, APR jumps from 12% to 13.15%.

Business loan DSCR check

Loan $100,000 | Rate 7% APR | Term 84 months | No fee
Annual debt service $17,187.84 | DSCR Net Income $60,000 = 3.49x
Monthly payment $1,432.32 | Total interest $20,314.88
DSCR above 1.25x is usually acceptable to lenders. Use to check affordability for business.

How is loan interest calculated? Interest and APR explained

How interest is calculated each month

Interest on fixed rate installment loan is calculated using standard amortization: Monthly interest = Remaining principal × (APR ÷ 12). Each month you multiply outstanding balance by monthly rate annual divided by 12 to find that month interest charge. Early balance high interest high.

How APR includes fees

Take the cash you actually receive, which is the loan minus any fee you paid or financed, and find the rate that makes your scheduled payments add up to it. That rate is the APR, and it is always higher than the quoted rate whenever a fee is involved. Example $15,000 with $750 fee financed 5% nominal APR 9.64% true APR. Upfront fee does not affect APR as much as financed fee.

How to calculate LTV

Divide what you are borrowing by what the asset is worth. Borrow $160,000 against a $200,000 home and the LTV is 80%, which is the line most lenders price around. Lower LTV better rate, higher LTV may require PMI.

Total loan interest formula

Total loan interest = Monthly payment × number of payments - principal. Example $20,000 4.5% 60 months $371.22 × 60 = $22,273.20 - $20,000 = $2,273.20 interest. Our calculator shows this under Total Interest Payments.

All calculators are part of InvoiceTools free suite for invoicing, pricing, taxes, and business finance. Google indexes them as one toolkit.

Other free tools for the job

If you are checking loan, you probably also need these for invoicing and business. Same browser side no sign up.

Loan payment formula and methodology

Monthly payment M = P * r * (1+r)^n / ((1+r)^n - 1) where P is principal after down payment plus financed fee if any, r is monthly rate annual divided by 12 divided by 100, n is number of payments. Total interest equals M times n minus P. APR with fees solved by finding rate that makes present value of payments equal net proceeds. If fee upfront net proceeds equals principal. If fee financed net proceeds equals principal minus fee but P includes fee, APR higher. Payoff date calculated from start date plus n months. Extra payment reduces principal directly. No storage no API, calculations in browser. Disclaimer estimates for informational purposes only.

Loan payment, interest and APR questions, answered

Common questions about loan payments, interest, APR, LTV.

How do you calculate interest on a loan?

Only on what you still owe. Each month the lender applies one twelfth of the annual rate to the balance that is left, so the interest share of your payment falls as the balance does. On $20,000 at 4.5%, the first month costs $75 in interest and the last costs under $2, even though the payment never changes.

How much loan can I qualify for?

Most lenders size your loan based on maximum affordable monthly payment. Use this calculator in reverse enter target monthly payment and term to see principal you could qualify for at given APR. Example $500 per month for 60 months at 4.5% qualifies for about $26,800 loan.

How to calculate car loan interest?

A car loan behaves like any other fixed-rate installment loan. Multiply outstanding principal by monthly rate APR ÷ 12. Our auto loan calculator automates this every month and shows total interest over life of loan. Example $20,000 at 4.5% first month interest $75.

How to calculate APR on a loan?

APR includes both interest rate and fees you finance. We solve for APR by finding rate that equates loan net proceeds principal minus financed fees with scheduled payments over term. Borrow $15,000 with a $750 fee rolled in at 5% and the cash in your hand is $14,250, while the repayments are sized on $15,000. That gap is what takes the APR to 9.64%.

How to calculate loan to value LTV?

Loan to value is ratio of loan amount to asset value: LTV = (Loan Amount ÷ Asset Value) × 100%. For $200,000 home with $160,000 loan LTV is 80%. Lower LTV usually better rate.

How to calculate monthly payment on a loan?

We use Payment = [P × r] ÷ [1 - (1 + r)^ - n] where P is principal, r is monthly rate APR ÷ 12, n is total payments. You can enter any values into calculator to see instant results. Example $20,000 at 4.5% for 60 months $371.22.

What is the monthly payment on a $20,000 loan?

At 4.5% over 60 months it is $372.86 a month, and you pay $2,371.62 in interest over the term. Change the rate or the term above and both numbers move: the same loan over 36 months costs less in total interest but more each month.

How much interest will I pay over the life of a loan?

Multiply the monthly payment by the number of months, then subtract the amount borrowed. On $20,000 at 4.5% for 60 months that is $22,371.62 paid against $20,000 borrowed, so $2,371.62 in interest.

Why is my APR higher than the interest rate I was quoted?

The interest rate covers interest alone. APR folds in the origination fee and any other financed charges, so it is the number that tells you what the loan really costs. A fee rolled into the principal raises APR without changing the headline rate.

Should I pay the origination fee upfront or finance it?

Paying upfront keeps the fee out of the principal, so the monthly payment and total interest stay lower. Financing it spreads the cost but means you pay interest on the fee for the whole term. Switch the fee option above to see both.

Does a longer loan term save me money?

It lowers the monthly payment and raises the total cost, because interest accrues for longer. The amortization schedule shows exactly how much: compare the same amount over 36, 60 and 84 months.

How much does an extra monthly payment save?

More than most people expect, because every extra dollar comes off the principal rather than the interest. Enter an amount in the extra payment field and the calculator shows the interest saved and how many months earlier the loan clears.

What is amortization?

It is the schedule that splits each payment between interest and principal. Early payments are mostly interest because the balance is high; later ones are mostly principal. The total stays the same each month on a fixed-rate loan.

What is a good interest rate on a business loan?

It depends on the term, the security offered and your trading history rather than on any single benchmark. Compare offers on APR rather than the headline rate, since fees are where the difference usually hides.

How much loan can I afford?

Work backwards from the payment you can carry every month, not from the maximum a lender will approve. The target payment shortcut above converts a monthly budget into the principal it supports at a given rate and term.

What is LTV and why does it matter?

Loan to value is the loan divided by the value of the asset securing it. Lenders price risk with it: at or below 80% you usually get better terms, and above it you may face insurance or a higher rate.

What is DSCR and how do lenders use it?

Debt service coverage ratio compares the income a business generates to the debt payments it owes. Above 1.25 is comfortable for most lenders, and it is the figure that decides many business loan applications, so it is worth knowing yours before applying.

Does this calculator work for a mortgage?

Yes. Enter the amount, rate and term in months, so 360 for a 30 year mortgage. It handles the payment, interest and payoff date; it does not model property tax, insurance or escrow.

Can I use it for an auto loan?

Yes, and it is a good way to compare dealer finance against a bank offer. Put both quotes in, fees included, and compare the APR rather than the monthly payment.

What is the difference between fixed and variable rate?

A fixed rate keeps the payment the same for the whole term, which is what this calculator models. A variable rate moves with a benchmark, so the payment can rise or fall and any projection is only a snapshot of today's rate.

Should I pay off a loan early?

Usually yes if there is no prepayment penalty, because the interest you avoid is guaranteed. Check the agreement first: some loans charge a fee for early settlement that cancels the saving.

How is the payoff date calculated?

It is the start date plus the number of months in the term, adjusted for any extra payments you make. Extra payments shorten the term rather than reducing the monthly amount.

Is my loan information stored anywhere?

No. Every calculation runs in your browser. There is no signup, nothing is uploaded, and closing the tab clears the numbers.

Can I export the amortization schedule?

Yes. The schedule exports as a file you can open in a spreadsheet, which is the practical way to hand it to an accountant or attach it to a loan application.

How much do I need to invoice to cover a loan payment?

Divide the payment by your net margin. A $384 monthly payment at a 20% margin needs $1,920 of invoiced work a month before the loan is covered, and that is before wages, insurance or the vehicle. Work out the payment above, then check the margin per job before you commit.

Can I invoice a client for equipment I financed?

You can recover the cost through what you charge, but bill it as part of your rate or as a clearly described line item rather than as somebody else's loan. Clients agree to a price for work, not to your finance agreement, and an itemised quote avoids that argument entirely.

Is invoice factoring cheaper than a business loan?

Rarely, once you annualise it. Paying 3% to be paid 30 days early works out near 36% a year, against a term loan you can price here at a fraction of that. Factoring buys speed, not cheap money, and it is worth comparing the two on APR before choosing.

What is DSCR and how do my invoices affect it?

Debt service coverage ratio is monthly profit divided by monthly debt payments, and most lenders look for about 1.25. Your invoices are the proof: consistent numbering, clear terms and recorded payment dates are what turn a claim about income into evidence a lender accepts.

Should I take a loan or ask clients for a deposit?

If the gap is cash flow on a specific job rather than a lasting need, a deposit costs nothing and a loan costs interest for the whole term. Ask for a deposit on the quote and stage the rest against milestones; keep borrowing for things that outlast the job, like a van or equipment.

What is the loan payment formula?

M = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the amount borrowed, r is the monthly rate (the annual rate divided by 12 and by 100) and n is the number of months. The calculator prints the formula with your own figures filled in beneath the result.

How do I calculate a loan payment by hand?

Convert the annual rate to a monthly one, raise (1 + that rate) to the number of months, then multiply the amount borrowed by the rate and that factor, and divide by the factor minus one. On $20,000 at 4.5% over 60 months it comes to $372.86 before any fee.

How much of my payment goes to interest?

At the start, most of it. Interest is charged on the balance outstanding, so the first payment on a $20,000 loan at 4.5% carries $75 of interest, while the last carries under $2. The amortization schedule shows the split for every month.

How do I compare two loan offers?

Compare APR rather than the monthly payment, and compare the total of payments rather than the rate. A longer term flatters the monthly figure while costing more overall, and a fee rolled into the principal never shows up in the headline rate at all.

Part of InvoiceTools.com - Free Invoice Generator, Late Fee Calculator, Profit Margin Calculator, Loan Calculator, Salary Calculator, Sales Tax Calculator. Built for freelancers, small business, agencies who invoice clients. No sign up, client side only, indexed as invoicing toolkit.

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