Loan Calculator

Loan Calculator — monthly payments,
total interest & amortization schedule.

Calculate any loan instantly — mortgage, auto, personal. See exactly where your money goes, month by month.



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Loan Calculator

Enter your loan details to instantly see your monthly payment, total interest paid, and a full amortization breakdown.




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MONTHLY PAYMENT
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TOTAL INTEREST
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TOTAL COST
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Principal
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Total interest
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Use the sliders to quickly adjust loan amount, rate, and term.

Full month-by-month breakdown of principal, interest, and remaining balance.

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Period Payment Principal Interest Balance

Assumes fixed-rate loan with equal monthly payments. Extra payments not included.

Compare how different loan terms affect your monthly payment and total cost.

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Green card = lowest total interest paid.

Find out the maximum loan you can afford based on your monthly budget.

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How loan calculations work

Every fixed-rate loan uses the same standard amortization formula. Your monthly payment stays the same, but early payments go mostly toward interest — later ones toward principal.

Formula
M = P[r(1+r)ⁿ] / [(1+r)ⁿ−1]

Key insight
Even a 0.5% rate drop can save tens of thousands over a 30-year mortgage.

Rule of thumb
Keep total housing costs under 28% of gross monthly income.



What Is a Loan Calculator?

Short answer: A loan calculator estimates your monthly payment, total interest, and payoff timeline for any fixed-rate loan — before you sign anything. Enter the loan amount, interest rate, and term, and it applies the same amortization formula banks use, instantly showing what the loan truly costs — not just the monthly payment.

How to Calculate Your Monthly Loan Payment

Short answer: use the amortization formula M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount borrowed, r the monthly interest rate, and n the number of monthly payments. The calculator above applies it instantly and shows the full month-by-month breakdown.

Worked example: a $25,000 auto loan at 7% annual interest over 5 years (60 payments):

r = 7% ÷ 12 = 0.005833 per month
M = 25,000 × 0.005833 × (1.005833)⁶⁰ ÷ ((1.005833)⁶⁰ − 1)
Monthly payment: $495.03
Total interest paid: $4,701.80

What Affects Your Monthly Payment? The 3 Variables

Only three inputs decide your payment: how much you borrow (principal), the interest rate, and the term (number of payments). Change one and watch the effect on a $20,000 baseline loan:

Scenario Loan amount Rate Term Monthly payment
Baseline $20,000 10% 60 mo $424.94
Higher rate $20,000 14% 60 mo $465.37
Bigger loan $30,000 10% 60 mo $637.41
Longer term $20,000 10% 84 mo $332.02

The pattern: rates and loan size move the payment almost linearly, but stretching the term cuts the payment while raising total interest — see the term comparison below.

What Is a Good Loan Interest Rate in 2026?

Your credit score is the single biggest lever on your rate. Typical US personal-loan APR ranges in 2026 look like this — shown with the monthly payment on a $15,000, 48-month loan so you can feel the difference:

Credit score Typical APR Monthly payment Total interest
Excellent (750+) 7–9% ~$366 ~$2,577
Good (700–749) 10–14% ~$395 ~$3,960
Fair (640–699) 15–20% ~$437 ~$5,962
Poor (below 640) 21–36% ~$523 ~$10,094

Indicative US market ranges based on 2026 averages reported by Bankrate and NerdWallet; payments calculated at the midpoint APR. Your actual offer depends on the lender, your income, and debt-to-income ratio.

Even 50 points of credit-score improvement can move you a full tier and save thousands — which is why checking your rate with a soft inquiry (no score impact) before borrowing is worth it.

APR vs Interest Rate: What’s the Difference?

The interest rate is the base cost of borrowing. The APR (annual percentage rate) folds in lender fees — origination fees, closing costs, points — and expresses the true yearly cost. Two loans with the same rate can have very different APRs:

Stated rate: 10% on $15,000 over 48 months → $380.44/mo
Same loan with a 5% origination fee deducted from your proceeds → true APR ≈ 12.74%

You still pay $380.44 a month, but you only received $14,250 — the fee silently raised your cost by nearly 3 percentage points. Always compare loans by APR, not the headline rate. Under the US Truth in Lending Act, lenders must disclose your APR in writing before you sign.

Shorter vs Longer Loan Term: Which Saves More?

A longer term feels cheaper month to month, but the interest bill tells the real story. On a $20,000 loan at 10%:

Term Monthly payment Total interest Total cost
36 months $645.34 $3,232 $23,232
60 months $424.94 $5,496 $25,496
84 months $332.02 $7,890 $27,890

Rule of thumb: take the shortest term whose payment fits your budget comfortably. The 84-month option “saves” $313 a month versus 36 months but costs an extra $4,658 in interest.

How Can I Pay Off My Loan Faster?

Every dollar above the minimum goes straight to principal, which shrinks all future interest. On the $25,000, 7%, 60-month example ($495.03/mo):

Extra per month Payoff time Total interest You save
$0 60 months $4,702 —
$50 54 months $4,179 $523 + 6 months
$100 49 months $3,763 $939 + 11 months

Three proven accelerators: round up your payment ($495 → $550), switch to biweekly half-payments (26 halves a year = one extra full payment annually), or put windfalls straight to principal. One caution: check for a prepayment penalty first — some loans charge a fee for early payoff, though most US personal and auto loans don’t.

Secured vs Unsecured Loans

Secured loans (auto loans, mortgages) are backed by collateral the lender can claim — so rates run lower. Unsecured loans (most personal loans, credit cards) have no collateral, so lenders charge more to cover the risk. When pricing your loan, lenders weigh the “five C’s”: character (credit history), capacity (income vs debts), capital (savings/down payment), collateral, and conditions (loan purpose and amount).

How Much Can I Borrow on My Income?

Lenders cap your debt-to-income ratio (DTI) — all monthly debt payments divided by gross monthly income — at roughly 36–43%. Quick check: on $6,000/month gross income, total monthly debts (including the new loan) should stay under about $2,160–$2,580. Try the affordability tool in the calculator above — it runs this exact math on your numbers.

Understanding Your Amortization Schedule

An amortization schedule lists every single payment: how much goes to interest, how much to principal, and the remaining balance. Two things stand out:

  • Interest is front-loaded. Early payments are mostly interest because the balance is at its highest; over time, each payment chips more off the principal.
  • Small rate differences matter enormously. On a $25,000, 5-year loan, 7% vs 6% is a difference of about $700 in total interest — the schedule makes it visible.

Loan Types This Calculator Handles

  • Auto loans — typically 3–7 year terms; compare dealer financing against bank offers.
  • Personal loans — usually unsecured with higher rates; check the true total cost before signing.
  • Mortgages — long 15–30 year terms where amortization effects are dramatic (see our dedicated mortgage calculator for PITI, PMI, and tax handling).

Loan Calculator FAQs

How do I calculate my monthly loan payment?
With the amortization formula M = P × r(1+r)^n ÷ ((1+r)^n − 1): P is the loan amount, r the monthly interest rate (annual rate ÷ 12), and n the number of payments. Or just enter the three numbers in the calculator above.
What is an amortization schedule?
A table showing every payment over the life of the loan — the interest portion, principal portion, and remaining balance for each month. It reveals exactly how front-loaded interest is and how much the loan truly costs.
How can I pay off my loan faster?
Pay more than the minimum: extra amounts go straight to principal, cutting future interest. Even rounding your payment up ($495 → $550) shortens the term noticeably. Avoid loans with prepayment penalties first.
Fixed vs. variable interest rate — which is better?
Fixed rates never change, so your payment is predictable for the whole term. Variable rates start lower but can rise. For budgeting certainty, most borrowers prefer fixed; this calculator models fixed-rate loans.
What is the true total cost of a loan?
Monthly payment × number of payments. On the $25,000 example above: $495.03 × 60 = $29,701.80 — so the loan costs $4,701.80 in interest beyond the principal. Always compare this figure, not just the monthly payment.
Do biweekly payments save money?
Yes. Paying half the monthly amount every two weeks equals 26 half-payments a year — one extra full payment annually. That single extra payment can shave months off a long loan and save significant interest.
What’s the difference between APR and interest rate?
The interest rate is the base borrowing cost; the APR adds lender fees (origination, closing costs) and expresses the true yearly cost. Two loans with the same rate can have very different APRs — always compare by APR.
What credit score do I need for a good loan rate?
In the US, 740+ typically unlocks the best personal-loan APRs (around 7–9% in 2026); 700–749 lands around 10–14%; below 670 often means 16%+. Even 50 points of improvement can save thousands over the loan’s life.
How much can I borrow based on my income?
Lenders generally cap your debt-to-income ratio at 36–43% of gross monthly income. On $6,000/month income, that’s roughly $2,160–$2,580 in total monthly debt payments including the new loan.
Are there fees or penalties I should watch for?
Origination fees (1–12% of the loan in the US) and prepayment penalties raise the true cost — check the APR, not the headline rate, and read the loan note before signing.
Is a personal loan better than a credit card for a large purchase?
Usually yes, if the loan APR beats the card rate: you get a fixed payment, a fixed payoff date, and no revolving-balance trap. Credit cards make sense only if you can clear the balance within the billing cycle.
What happens if I miss a loan payment?
Expect a late fee plus damage to your credit score, which raises the cost of all future borrowing. If you’re struggling, contact the lender before you miss — hardship options exist but only if you ask early.

Last updated: October 2026. These are educational estimates using the standard amortization formula — the same math banks and lenders use — not financial advice. Rate ranges reflect US market averages reported by Bankrate and NerdWallet; your actual offer depends on your credit profile. Consult a licensed loan officer for your situation.