Loan Calculator

Calculate the monthly payment and total cost of any fixed-rate loan — personal, student, business or home improvement. See exactly how much goes to interest over the life of the loan.

Term in
Monthly payment
$396.02
  • Principal 84.2%
  • Interest 15.8%
Number of payments
60
Total interest
$3,761.44
Total of all payments
$23,761.44
Interest as % of loan
18.8%
Payoff date
Oct 20, 2031
Amortization schedule (yearly)
YearPrincipalInterestBalance
1$3,461.96$1,290.33$16,538.04
2$3,712.22$1,040.06$12,825.82
3$3,980.58$771.71$8,845.23
4$4,268.34$483.95$4,576.90
5$4,576.90$175.39$0.00

How to use the loan calculator

  1. Enter the amount you want to borrow.
  2. Enter the interest rate. Use the APR from your loan offer for the most realistic estimate.
  3. Enter the loan term and choose whether it is in years or months.
  4. Read your monthly payment, total interest and payoff date, and open the amortization schedule to see how your balance falls each year.

Loan payment formula

Fixed-rate installment loans use the standard amortization formula, which spreads principal and interest into equal monthly payments:

Payment = P × r / (1 − (1 + r)^−n)

Here P is the loan amount, r is the monthly interest rate (APR ÷ 12 ÷ 100) and n is the number of monthly payments. Early payments are mostly interest; later payments are mostly principal.

Example

Borrowing $20,000 at 7% APR for 5 years (60 payments) gives a monthly payment of about $396.02. You would pay about $3,761 in interest, for a total of roughly $23,761. Shortening the term to 3 years raises the payment to about $617.54 but cuts interest to around $2,232.

Interest rate vs. APR

The interest rate is the cost of borrowing the principal. The annual percentage rate (APR) also includes certain fees, such as origination fees, expressed as a yearly rate. When comparing loan offers, compare APRs — a loan with a lower rate but high fees can cost more overall.

How to get a better loan

  • Check your credit score first; higher scores usually qualify for lower rates.
  • Get prequalified with several lenders. Soft-credit prequalification doesn't affect your score.
  • Choose the shortest term you can comfortably afford to minimize interest.
  • Pay extra when you can. Most personal loans allow early repayment without penalty, and extra principal payments shorten the loan.
  • Watch for fees such as origination charges or prepayment penalties.

Frequently asked questions

How do I calculate a monthly loan payment?

Use the formula Payment = P × r / (1 − (1 + r)^−n), where P is the amount borrowed, r is the monthly interest rate (annual rate divided by 12) and n is the number of months. This calculator does it for you instantly.

What is an amortization schedule?

An amortization schedule is a table showing how each payment is split between interest and principal, and how the remaining balance declines over time. Early in the loan most of each payment goes to interest.

Does a longer loan term save money?

A longer term lowers the monthly payment but increases the total interest you pay. A shorter term costs more each month but saves money overall.

Can I use this for a student loan?

Yes. Enter the loan balance, interest rate and repayment term for a standard fixed-rate repayment plan. Income-driven repayment plans use different rules and are not modeled here.

What happens if I make extra payments?

Extra payments go toward principal, which reduces the balance faster, lowers total interest and shortens the loan. Check with your lender that extra payments are applied to principal and that there is no prepayment penalty.

Results are estimates for educational purposes and are not financial advice. Actual loan terms, rates, taxes and fees vary by lender and location — confirm figures with a qualified professional before making decisions.

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