Loan Calculator
Calculate your monthly loan payment and see how much interest you'll pay over the life of your loan. Works for personal loans, auto loans, debt consolidation, and more.
Enter Loan Details
How Loan Payments Work
Personal loans and most other installment loans use amortization, which means your monthly payment stays the same, but the split between principal and interest changes over time.
The Loan Payment Formula
Monthly payments are calculated using this formula:
Where:
- M = Monthly payment
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
How Amortization Works
- Early payments: More goes toward interest, less toward principal
- Middle payments: More balanced split between interest and principal
- Late payments: Most goes toward principal, little toward interest
- Result: Loan is fully paid off by the last payment
Tips to Save on Loan Interest
- Make extra payments toward principal when possible
- Choose the shortest term you can afford
- Improve your credit score before applying
- Shop around with multiple lenders
- Consider a co-signer if you have limited credit
- Avoid loans with prepayment penalties
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Frequently Asked Questions
How is my monthly loan payment calculated?
Your monthly payment is calculated using the loan amount, interest rate, and loan term. The formula distributes the total amount (principal + interest) evenly across all payment periods, ensuring the loan is fully paid off by the end of the term.
What types of loans can I calculate?
This calculator works for personal loans, auto loans, debt consolidation loans, home improvement loans, and most other fixed-rate installment loans. It does not apply to credit cards or lines of credit with variable payments.
Should I choose a shorter or longer loan term?
Shorter terms have higher monthly payments but significantly lower total interest. Longer terms have lower monthly payments but cost more in interest over time. Choose based on your budget and how quickly you want to be debt-free.
What is a good interest rate for a personal loan?
Personal loan rates typically range from 6% to 36%, depending on your credit score. Excellent credit (720+) may qualify for 6-10%, good credit (680-719) for 10-15%, and fair credit (640-679) for 15-25%. Always shop around for the best rate.
Can I pay off my loan early?
Most loans allow early payoff, but some have prepayment penalties. Check your loan agreement. Paying extra toward principal reduces total interest and shortens the loan term, saving you money.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.