Tool · Fintech
Business loan calculator
Monthly payment and total interest on a fixed-rate loan, with the first payments broken down.
Monthly payment
$1,037.92
Total interest
$12,275.07
Total paid
$62,275.07
Fixed rate, equal monthly payments. Lender fees are not included. Estimates only.
| # | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $375.00 | $662.92 | $49,337.08 |
| 2 | $370.03 | $667.89 | $48,669.19 |
| 3 | $365.02 | $672.90 | $47,996.29 |
| 4 | $359.97 | $677.95 | $47,318.35 |
| 5 | $354.89 | $683.03 | $46,635.32 |
| 6 | $349.76 | $688.15 | $45,947.17 |
How it’s calculated
The payment is the standard amortizing loan formula: loan amount times the monthly rate, divided by 1 minus (1 plus the monthly rate) to the power of minus the number of payments. The monthly rate is the annual rate divided by 12.
Each payment covers that month’s interest on the remaining balance first; the rest reduces the balance.
Worked example
$10,000 at 6% for 5 years is 60 payments of $193.33, or $1,599.68 of interest in total. The first payment is $50.00 of interest and $143.33 of principal.