Loan Calculator

Calculate your monthly payment, total interest, and APR for any fixed-rate loan.

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60 months (5 years)
6 mo 5 yr 10 yr 15 yr
Monthly Payment
$440
Total Interest
$6,415
Total Paid
$26,415
Payoff
5y 0m
Principal vs Interest
Principal: $20,000 (75%)
Interest: $6,415 (25%)
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How the Loan Calculator Works

This calculator uses the standard amortization formula to compute your fixed monthly payment on any installment loan — personal, auto, student, or custom. Each payment covers part interest and part principal; over time, more of each payment goes toward principal.

M = P × [r(1+r)n] / [(1+r)n − 1]

Where M is monthly payment, P is principal (loan amount), r is monthly interest rate (APR ÷ 12), and n is total number of payments.

APR vs interest rate

The interest rate is what you pay on the principal. APR includes interest plus required fees (origination fees, etc.) annualized — making it more accurate for comparing offers. Always compare loans by APR.

Personal loans

Unsecured loans typically range from 3 to 7 years with rates from 7% to 36% based on credit. Used for debt consolidation, major purchases, or emergencies. No collateral, but rates depend heavily on your FICO score.

Auto loans

Secured by the vehicle. Terms run 36 to 84 months. New car rates are usually 1–3% lower than used car rates. Longer terms reduce monthly payment but increase total interest — and you risk being "underwater" (owing more than the car is worth).

Student loans

Federal student loans have fixed rates set by Congress and offer income-driven repayment, deferment, and forgiveness options. Private student loans may have lower rates for excellent credit but lack federal protections. Standard repayment is 10 years; extended plans go up to 25–30 years.

How to lower your interest cost

  • Choose the shortest term you can afford — total interest drops sharply.
  • Make extra payments toward principal when possible.
  • Improve your credit score before applying — even 50 points can lower your rate noticeably.
  • Compare offers from at least 3–5 lenders. Pre-qualification is usually a soft credit pull.
  • Avoid origination fees when possible, or factor them into the APR.

Frequently Asked Questions

What's the difference between simple interest and amortized loans? +
Most installment loans (mortgages, auto loans, personal loans) are amortized: each payment is the same, but the split between interest and principal changes over time. Simple-interest loans calculate interest only on the remaining balance daily, so paying early saves more.
Should I take a longer term for a lower monthly payment? +
A longer term lowers your monthly cost but greatly increases total interest. For example, a $30,000 loan at 7% over 5 years costs about $5,640 in interest; over 7 years, it's about $8,090. Pick the shortest term you can comfortably afford.
Are there prepayment penalties? +
Many personal and auto loans have no prepayment penalties, but check your loan agreement. If a penalty exists (usually 1–2% of remaining balance), the savings from extra payments may not be worth it.
How does a co-signer affect my loan? +
A co-signer with strong credit can lower your interest rate significantly. They share responsibility — late payments hurt their credit too. If you default, the co-signer is legally on the hook for the full balance.
What credit score do I need to get a good rate? +
For the best personal loan rates, you usually need 720+. Auto loan top-tier rates start around 700+. Student loans (federal) don't require credit checks; private student loans usually want 670+.
Will applying for loans hurt my credit? +
Pre-qualification is usually a soft pull (no credit impact). When you formally apply, lenders do a hard pull which dings your score by a few points. Multiple hard inquiries for the same loan type within 14–45 days are typically counted as one for scoring.
Is this calculator accurate for my actual loan? +
It's accurate for fixed-rate amortized loans. Variable-rate loans, loans with origination fees, or loans with daily simple interest will differ. Always compare the lender's official Truth-in-Lending disclosure or APR.
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