Loan Calculator
Calculate monthly payments, total interest, and view a full amortization schedule for any personal loan, auto loan, or student loan.
Loan Details
Monthly Payment
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Enter loan details to calculate
Total Interest
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Cost of borrowing
Interest as % of Loan
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Relative cost
Number of Payments
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Monthly installments
Total Repaid
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All payments combined
Principal vs. Interest
Balance Over Time
Rate Comparison
How your payment changes with different interest rates
| Rate Scenario | Monthly Payment | Total Interest |
|---|---|---|
| Enter loan details above to see rate scenarios | ||
Amortization Schedule
Full month-by-month payment breakdown
| Month | Year | Payment | Principal | Interest | Balance |
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Understanding Your Loan Results
Once you enter your loan amount, interest rate, and term, the calculator shows three key numbers: your monthly payment, the total amount you'll repay, and the total interest cost. That third figure is often the most important for long-term financial planning.
For example, a $25,000 loan at 9.5% APR has a very different total cost depending on the term you choose:
| Loan Term | Monthly Payment | Total Repaid | Total Interest |
|---|---|---|---|
| 2 years | $1,146/mo | $27,504 | $2,504 |
| 3 years (common) | $799/mo | $28,764 | $3,764 |
| 5 years | $521/mo | $31,260 | $6,260 |
| 7 years | $397/mo | $33,348 | $8,348 |
Choosing a 7-year term over 2 years cuts your monthly payment by $749, but costs an extra $5,844 in interest over the life of the loan.
APR vs. Interest Rate: What's the Difference?
When comparing loan offers, the interest rate and the Annual Percentage Rate (APR) measure different things.
- Interest rate — The cost of borrowing the principal as a percentage. This determines your monthly payment calculation.
- APR — The interest rate plus most lender fees (origination fees, broker fees, some closing costs), expressed as an annualized rate. APR is the more complete cost-comparison number.
Example: Lender A offers 7.0% with a $500 origination fee. Lender B offers 7.3% with no fees. On a $20,000 loan over 3 years, Lender A's true APR is ~7.9% — making Lender B the better deal despite the higher stated rate. Always compare APRs.
Which Type of Loan Do You Need?
The right loan type depends on what you're borrowing for, how long you need it, and what collateral you can offer.
| Loan Type | Best For | Typical Rate | Typical Term |
|---|---|---|---|
| Personal Loan | Debt consolidation, home improvement, emergencies | 6–36% APR | 1–7 yrs |
| Auto Loan | Purchasing a vehicle | 4–20% APR | 2–7 yrs |
| Student Loan | Higher education costs | 4–14% (private) | 5–20 yrs |
| Home Equity Loan | Large home improvements (secured) | 6–10% | 5–30 yrs |
Rate ranges are approximate national averages as of 2026 and vary by lender and creditworthiness.
How Your Credit Score Affects Your Rate
Your credit score is one of the biggest factors determining your rate. On a $30,000 loan over 5 years, the difference between excellent and poor credit can cost over $16,000:
| Credit Score | Rating | Typical APR | Monthly Payment | Total Interest |
|---|---|---|---|---|
| 760–850 | Excellent | 7.5% | $601 | $6,060 |
| 700–759 | Good | 11.0% | $652 | $9,120 |
| 640–699 | Fair | 17.5% | $751 | $15,060 |
| 580–639 | Poor | 25%+ | $879 | $22,740 |
Approximate rates — actual offers vary by lender. $30,000 loan, 5-year term.
If your score is below 700, spending 6–12 months improving it before taking on a large loan can save thousands. Paying existing debt below 30% utilization and avoiding late payments are the fastest ways to improve your score.
Frequently Asked Questions
What's the difference between a fixed-rate and variable-rate loan?
A fixed-rate loan has the same interest rate for its entire term — predictable payments that never change. A variable-rate loan's rate can change periodically based on a benchmark (like the prime rate), so your payment can rise or fall. Fixed rates provide certainty; variable rates sometimes start lower but carry rate risk.
Should I choose a shorter or longer loan term?
Shorter terms mean higher monthly payments but significantly less total interest. Longer terms reduce monthly cash flow pressure but increase total cost considerably. If you can comfortably afford a 3-year payment, choose it over 5 years — the interest savings compound quickly.
Can I pay off a loan early without a penalty?
Many personal loans allow early payoff with no prepayment penalty, but some charge 1–2% of the remaining balance. Always ask about prepayment penalties before signing. If you plan to pay ahead of schedule, specifically choose a loan with no prepayment penalty.
How is the monthly payment calculated?
Using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual ÷ 12), and n is the total number of payments. Each payment covers that month's interest on the remaining balance, with the remainder applied to principal.
What loan amount can I qualify for?
Qualification depends on income, credit score, existing debt, and the lender's policies. Most lenders prefer that total debt payments (including the new loan) stay under 36–43% of gross monthly income. Use our Affordability Calculator to estimate what payment range fits your budget.
All calculations are estimates for informational purposes only. Consult a licensed financial professional before making borrowing decisions. Full Disclaimer.