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Loan Calculator

Calculate your monthly payment, total interest, and full amortization schedule for any loan. Enter your loan amount, interest rate, and loan term to instantly see your estimated monthly payment and total interest paid.

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What is Loan Calculator?

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.

How to use

  1. Enter the loan amount — the total amount you plan to borrow, before any fees.
  2. Enter the annual interest rate. Use the APR from your loan offer for the most accurate total cost.
  3. Select the loan term in months or years. Shorter terms mean higher payments but significantly less interest.
  4. Click Calculate to see your monthly payment and total interest cost over the life of the loan.
  5. Try different amounts and terms side by side to find the combination that fits your monthly budget without maximizing interest cost.

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.

Pro tip

Always compare loans using APR, not the stated interest rate. Two loans with identical rates can have very different APRs if origination fees differ. Also ask whether a prepayment penalty exists — if you plan to pay off the loan early, a lower-fee loan at a slightly higher rate may cost less overall than a lower-rate loan with a heavy prepayment penalty.

Frequently Asked Questions

Monthly payment is calculated using the standard amortization formula: M = P x r(1+r)^n / ((1+r)^n - 1), where P is the principal, r is the monthly interest rate, and n is the number of payments.
A personal loan calculator lets you estimate your monthly payment and total interest cost before you apply for a loan. You enter the loan amount, annual interest rate, and repayment term, and the calculator does the math instantly.
The three main factors are loan amount (principal), interest rate, and loan term. A higher principal or higher interest rate increases your payment, while a longer term spreads payments out and lowers each one — though you pay more interest overall.
Personal loan rates vary widely based on your credit score, income, and lender. Borrowers with excellent credit (720+) may qualify for rates below 10%, while those with fair credit may see rates of 15-25% or higher. Comparing offers from multiple lenders is the best way to find a competitive rate.
A longer loan term lowers your monthly payment by spreading the balance over more months, but it also means you pay interest for longer, increasing your total cost. A shorter term results in a higher monthly payment but less total interest paid.
Yes. This calculator works for any installment loan — personal loans, auto loans, student loans, and more. Simply enter the loan amount, interest rate, and term in months to see your payment and full amortization schedule.
The interest rate is the annual cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus most lender fees, giving a more complete picture of the true cost. When comparing loan offers, APR is the better number to use.
You can lower your monthly payment by reducing the loan amount (making a larger down payment), securing a lower interest rate (by improving your credit score or shopping lenders), or choosing a longer loan term. Keep in mind that a longer term increases your total interest cost.
It depends on your priorities. A shorter term saves significant money on interest and gets you debt-free sooner, but requires higher monthly payments. A longer term frees up cash each month but costs more overall. Use the calculator to compare both scenarios side by side.
An amortization schedule shows each monthly payment broken down into principal and interest portions, along with the remaining balance after each payment.