Loan Calculator
Personal loan, auto loan, or any fixed-payment loan. See total cost.
Monthly payment
$410.33
Amortization scheduleShow by year ▾Hide ▴
| Period | Interest | Principal | Balance |
|---|---|---|---|
| Year 1 | $1,571 | $3,353 | $16,647 |
| Year 2 | $1,275 | $3,649 | $12,998 |
| Year 3 | $953 | $3,971 | $9,027 |
| Year 4 | $601 | $4,322 | $4,705 |
| Year 5 | $219 | $4,705 | $0 |
A loan calculator shows what any fixed-rate, fixed-term loan will cost: the monthly payment, the total interest, and the total amount repaid. It works the same way for a personal loan, an auto loan, a student loan, or any installment debt.
Enter the amount borrowed, the annual interest rate (APR), and the term in months or years. The tool returns a level monthly payment that clears the balance exactly at the end of the term.
Comparing loans on the total repaid, not just the monthly payment, is the quickest way to see which offer is genuinely cheaper. A lower payment stretched over more months often costs more in the end.
How this calculator works
The calculator uses the amortization formula M = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the loan principal, r is the monthly rate (APR divided by 12), and n is the total number of monthly payments. Each month, interest is charged on the remaining balance, your fixed payment covers that interest first, and the rest reduces the principal. The schedule repeats until the balance reaches zero. Total interest equals the sum of all monthly interest charges, or about (M x n) - P. A higher APR or a longer term both raise total interest, but the term also lowers each monthly payment, so the two work against each other.
What affects the number
- APR sets the cost of borrowing; compare the APR rather than the nominal rate because APR includes most fees.
- Term length changes the trade-off: longer terms mean smaller payments but more total interest.
- Origination fees or points reduce the money you actually receive and effectively raise the cost of the loan.
- Whether interest is simple or precomputed affects how much you save by paying early; most modern installment loans are simple-interest.
- Prepayment penalties, if any, can offset the savings from paying a loan off ahead of schedule.
- Your credit profile determines the rate you are offered, which is usually the single biggest factor in total cost.
Frequently asked questions
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. The APR (annual percentage rate) folds in most upfront fees, so it reflects the true yearly cost and is the better number for comparing loans. Two loans with the same rate can have different APRs if their fees differ.
Does paying extra on a loan save money?
On a simple-interest loan, yes. Extra payments go straight to principal, so they remove the future interest that balance would have accrued and shorten the term. Check for prepayment penalties first, though they are uncommon on standard personal and auto loans.
Why does a longer term cost more overall?
A longer term spreads the balance over more months, so each payment is smaller and covers less principal early on. Because the balance stays higher for longer, it accrues more total interest even at the same rate.
What is amortization?
Amortization is the process of paying off a loan with equal payments over time, where each payment covers the current interest first and then reduces the principal. Early payments are interest-heavy; later payments are principal-heavy, even though the payment amount stays the same.
This calculator provides general estimates for educational purposes only and is not financial, medical, legal, or tax advice. Your actual results depend on your specific situation and current rates.