Loan Calculator

Use this loan calculator to estimate the monthly payment on a personal loan, auto loan, or any other fixed-rate installment loan.

Enter the amount you’re borrowing, the APR, and the term, and the calculator shows your monthly payment, how much interest you’ll pay over the life of the loan, and when you’ll be debt-free. Add an extra monthly payment to see how much time and money you could save by paying ahead.

How to use this calculator

Loan amount. Enter the amount you’ll actually borrow, not the price of what you’re buying. For a car, that’s the price minus your down payment and any trade-in, plus any taxes or fees you choose to finance. For a personal loan, it’s the amount the lender deposits plus any origination fee added to the balance.

Interest rate (APR). Enter the annual percentage rate from your loan offer or disclosure. APR includes certain fees on top of the interest rate, so it gives a more complete picture of cost. If you only have a quoted interest rate, use that, but know your true cost may be a bit higher. Our guide to APR vs. interest rate explains the difference.

Loan term. Enter the length of the loan in months. A 5-year loan is 60 months, a 3-year loan is 36, and a 6-year loan is 72. You’ll find the term on your offer or loan agreement. If you’re still comparing offers, try several terms one after another and watch how the monthly payment and total interest move in opposite directions.

Extra monthly payment. Enter any amount you plan to pay on top of the required payment each month. Leave it at $0 to see the standard schedule. The calculator assumes the extra goes straight to principal. Many lenders apply extra payments that way, but confirm how yours handles them.

How it’s calculated

The calculator uses the standard amortization formula that lenders use for fixed-rate installment loans. It divides your APR by 12 to get a monthly rate, then finds the single payment that, made every month for the full term, pays off both the interest and the balance exactly on time.

M = P × r ÷ (1 − (1 + r)^−n)

M = monthly payment
P = loan amount
r = APR ÷ 12 (as a decimal)
n = number of monthly payments

Each month, interest is charged on the remaining balance (balance × r). The rest of your payment, plus any extra, reduces the balance. Because the balance shrinks, the interest portion shrinks too, so more of each payment goes to principal over time. Our guide to how loan amortization works walks through this month by month.

The results assume:

• A fixed rate for the whole loan.
• Payments made once a month, on time, starting one month after you borrow.
• No fees beyond what’s already reflected in the amount or APR.
• Extra payments applied entirely to principal in the month you make them.

If the rate is 0%, the payment is simply the loan amount divided by the number of months.

Example

Here’s what the calculator shows with its default inputs: a $25,000 loan at 7.5% APR for 60 months, with no extra payment.

In the first month, interest is $25,000 × 0.075 ÷ 12 = $156.25, so about $345 of your first payment goes toward the balance. By year five, interest is only $237 for the whole year, and nearly all of each payment reduces principal. The chart below the results shows this shift, year by year: you pay $1,730 of interest in year one but just $237 in year five.

Now set the extra monthly payment to $100. Your total monthly outlay becomes $600.95, the loan is paid off in 4 years 1 month, and total interest falls to $4,043. That’s about $1,014 saved and 11 fewer payments.

The total paid figure is worth a close look. It’s the loan amount plus every dollar of interest, so it shows the real price of borrowing. Here, borrowing $25,000 costs you $30,057 by the time you’re done, which is about 20% more than you borrowed.

The term matters just as much. The same $25,000 at 7.5% costs $777.66 a month over 36 months with $2,996 in interest, or $432.25 a month over 72 months with $6,122 in interest. The longer loan lowers the payment by about $69 compared with 60 months, but it adds over $1,000 in interest.

Tips to lower your payment and total cost

1. Borrow less. A bigger down payment or a less expensive purchase lowers the payment and the interest at the same time. Every dollar you don’t borrow is a dollar you don’t pay interest on.
2. Improve your credit before you apply. Lenders generally offer lower rates to borrowers with stronger credit. Even a couple of points of APR makes a real difference: at 5.5% instead of 7.5%, the default loan costs $477.53 a month and $3,652 in total interest. See what is a good credit score for what lenders look at.
3. Compare several offers. Rates and fees vary between lenders for the same borrower. Compare APRs, not just monthly payments, so fees don’t hide inside a lower-looking number.
4. Choose the shortest term you can afford. A longer term lowers the monthly payment but raises the total cost. Use the calculator to find the shortest term that still leaves room in your budget.
5. Pay a little extra each month. Even a small extra amount applied to principal shortens the loan. Round up your payment, or add part of any raise.
6. Watch for prepayment penalties. Before paying ahead, check your loan agreement to confirm there’s no fee for early payoff and that extra payments go to principal.

Related guides

• How Loan Amortization Works (With Examples)
• APR vs. Interest Rate: What’s the Difference?
• What Is a Good Credit Score?

This content is for educational purposes only and isn't financial advice. Calculator results are estimates based on the numbers you enter. For decisions about your situation, consider talking with a qualified professional. Read our full disclaimer.