All business calculators · Business plan generator
Try your own numbers
Use one consistent currency. Defaults are illustrative assumptions, not typical business figures.
Formula and assumptions
M = P × r ÷ [1 − (1 + r)^(−n)], where P is principal, r is annual percentage rate ÷ 100 ÷ 12, and n is years × 12. At zero interest, M = P ÷ n. Total interest = M × n − P.
Assumes equal end-of-month payments, monthly compounding, a constant rate and no fees, balloon payment or prepayment. Actual lender conventions may differ.
Worked example — illustrative only
Illustrative assumptions: borrowing $100,000 at 6% annually over 5 years gives about $1,933.28 per month and $15,996.81 total interest. Calculations use unrounded payments before displaying cents.
Frequently asked questions
Can I use a zero interest rate?
Yes. The principal is divided equally across the repayment months, with zero interest.
Does this include lender fees?
No. This general loan calculator includes principal and interest only. Add any quoted fees separately when comparing offers.