Loan Interest Formula: Monthly Payment = PMT(Annual Interest Rate, Number of Years in Loan, Loan Amount, 0)

Loan Interest Definition This free online Interest Calculator is so easy that almost anyone can use it – and it’s fast to boot! All you have to do to learn how to do interest calculations in a flash is just enter in the loan amount, interest rate, and the number of years the loan lasts. That’s it! Who knew that using an Interest Calculator could be so easy and… dare we say … fun? Come on, nobody wants to do loan interest calculations longhand with a pencil and while using Microsoft Excel’s formulas is a great deal easier than using a pencil and paper even that is a slow and antiquated interest calculation method compared to our free Interest Calculator online! Try it out now! Also, check out the Compound Interest CalculatorĀ or the Extra Payment Calculator.

How to Calculate Loan Interest Let's be honest - sometimes the best loan interest calculator is the one that is easy to use and doesn't require us to even know what the loan interest formula is in the first place! But if you want to know the exact formula for calculating loan interest then please check out the "Formula" box above.