How to Use
Enter the loan amount - the total amount you plan to borrow, before any fees.
Enter the annual interest rate. Use the APR from your loan offer for the most accurate total cost.
Select the loan term in months or years. Shorter terms mean higher payments but significantly less interest.
Instantly view your monthly payment and total interest cost over the life of the loan.
Try different amounts and terms side by side to find the combination that fits your monthly budget without maximizing interest cost.
What Is This Tool?
A loan calculator estimates your monthly payment for any fixed installment loan - personal loans, auto loans, student loans, or any amount borrowed at a fixed rate over a defined term. Each payment covers accrued interest first, then reduces your principal balance. Understanding the difference between APR (Annual Percentage Rate) and the stated interest rate is critical: APR includes origination fees and other loan costs, making it the true cost of borrowing. Lenders are legally required to disclose the APR, and it is always the right number to use when comparing loan offers from different lenders - not the interest rate alone, which omits fees.
Why It Matters
Loan term has an outsized effect on total cost. A $10,000 personal loan at 12% over 3 years costs about $1,957 in interest. The same loan over 5 years drops the payment by roughly $100 per month - but total interest rises to $3,346. For large loan amounts, this difference compounds significantly. Knowing your true total cost before signing lets you compare offers accurately and avoid the common mistake of optimizing for the lowest monthly payment without considering the total amount you will pay over time.