Loan Calculator
Estimate your monthly payment and total interest for any loan.
Enter loan amount, rate, and term above to see your payment.
How Loan Interest Works
Most personal and auto loans use simple amortizing interest: you pay the same amount every month, but the split between principal and interest shifts over time. Early payments are mostly interest; later payments are mostly principal.
Monthly payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
P = principal · r = monthly rate (APR ÷ 12) · n = total payments
Example — $20,000 loan at 7% APR for 5 years (60 months):
- Monthly rate r = 7% ÷ 12 = 0.5833%
- Monthly payment = $396
- Total paid = $23,760 → $3,760 in interest
Tip: Making one extra payment per year on a 5-year loan can cut 3–6 months off your term and save hundreds in interest.
Frequently Asked Questions
How is a monthly loan payment calculated?▼
Monthly payment = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of payments.
What is the difference between APR and interest rate?▼
The interest rate is the cost of borrowing the principal. APR includes the interest rate plus other fees and costs, giving a more complete picture of the loan's total cost.
How do I pay off a loan faster?▼
Make extra payments directly toward the principal, pay biweekly instead of monthly, or round up your monthly payment. Even small extra amounts can save significant interest.
What credit score do I need for a personal loan?▼
Most lenders require a minimum credit score of 580–640. A score above 700 typically qualifies for the best interest rates.
How much does a $10,000 loan cost per month?▼
At 7% APR over 3 years: about $309/month. At 15% APR over 5 years: about $238/month but with much more total interest paid.
What is an amortization schedule?▼
A breakdown of each payment into principal and interest over the loan's life. Early payments are mostly interest; later payments are mostly principal.