Loan Calculator
Estimate your monthly loan payment, total interest and full payoff schedule for any personal, auto or home loan.
Loan Calculator — input your values
What does this financial calculator do?
This loan calculator works out your monthly payment for any fixed-rate loan — personal, auto or otherwise — based on the amount you borrow, the annual interest rate and the term you choose. Upfront fees are added to the loan amount so you see the true cost of borrowing.
You get the full picture: the monthly payment, total interest, total cost, a payoff chart and an amortization schedule showing how each payment splits into interest and principal. Try adding an extra monthly payment to see how much time and money you can save.
Formula and variables
This is the standard fixed-payment formula used by most amortizing loans.
| Symbol | Meaning |
|---|---|
| M | Monthly payment |
| P | Loan amount including upfront fees |
| r | Monthly interest rate (annual rate ÷ 12) |
| n | Total number of monthly payments |
Worked example
You borrow $10,000 for 36 months at 7.5% APR, with $300 in upfront fees rolled into the loan.
- Amount financed: $10,000 + $300 = $10,300.
- Monthly rate: 7.5% ÷ 12 = 0.625%.
- n = 36 payments.
- Monthly payment M ≈ $320.39.
- Total interest ≈ $1,234, total cost ≈ $11,534.
Answer: Monthly payment ≈ $320.39 for 36 months.
Tips and common mistakes
Tips
- Compare the APR, not just the monthly payment — fees and rates together decide the true cost.
- Shorter terms mean higher payments but much less total interest, so model both before deciding.
- An extra $25 to $50 per month on a longer loan can shave off several months of payments.
- Check for prepayment penalties before paying a loan off early; most personal loans have none.
Common mistakes to avoid
- Comparing loans only by monthly payment while ignoring total interest and fees.
- Forgetting to include upfront fees, which increase the amount you actually repay.
- Choosing the longest term just to lower the payment without checking the interest cost.
Loan Calculator — frequently asked questions
How is the monthly loan payment calculated?
It uses the formula M = P × r(1 + r)⿠/ [(1 + r)⿠− 1], where P is the loan amount, r is the monthly interest rate and n is the number of payments. The result is a fixed payment that fully repays the loan by the end of the term.
What is the difference between APR and interest rate?
The interest rate is what you pay on the principal, while APR includes fees and other costs expressed as an annual rate. APR is the better number for comparing loans.
Does paying extra every month really help?
Yes. Extra payments reduce the principal directly, which cuts both the term and the total interest. Even small amounts add up significantly over multi-year loans.
What happens if I pay the loan off early?
For most personal loans, paying off early simply stops future interest from accruing — you are not charged interest on the remaining term. Check whether your loan has a prepayment penalty first.
How much can I afford to borrow?
A common guideline is keeping total debt payments at or below 36% of your gross monthly income. Lenders also weigh your credit score, income stability and existing debts.
Why is my first payment mostly interest?
Interest is calculated on the outstanding balance, which is highest at the start. As you pay down the principal, the interest portion shrinks and the principal portion grows.