Loan Calculator
A loan's real price is the total interest, not the monthly payment. Enter your loan below to see both - plus exactly how much money extra payments would save you.
Monthly payment
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- Total interest paid
- $0
- Total cost of loan
- $0
- Payoff time
- -
- Interest saved by extra payments
- $0
Fixed-rate, fully amortized loan. Fees not included - compare offers by APR.
Year-by-year payoff
| Year | Principal paid | Interest paid | Remaining balance |
|---|
Where the money goes
The green block is interest saved by extra payments and it stays yours. The orange is total interest paid and it does not come back.
Move it and watch
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at {v} for loan amount
And what you can change
Why your own figure may differ
How to use the loan payments calculator
- Enter the amount you're borrowing (or still owe, if refinancing an existing balance).
- Add the APR from your loan offer - not just the interest rate, so fees are reflected.
- Set the term in years, then read the payment and the total-interest figure next to it - that second number is the loan's real price tag.
- Try the extra-payment field last: even small amounts visibly shrink the interest and the payoff date.
The formula behind the numbers
Every fixed-rate loan - personal, auto, student, or mortgage - uses the same amortization formula:
Payment = P × r ÷ (1 − (1 + r)−n)
- P. loan amount · r. monthly rate (APR ÷ 12) · n. number of monthly payments
Worked example: $20,000 at 7.5% for 5 years
Direct answer: the payment is $400.76 per month. Over 60 payments you hand the lender about $24,046 - the loan's true cost is roughly $4,046 in interest on top of the $20,000 borrowed. Add $50/month extra and you finish about 7 months early, keeping around $550 of that interest.
Term length is the hidden lever
Lenders often pitch longer terms as "more affordable." The payment falls, but the interest meter runs longer. Same $20,000 at 7.5%:
| Term | Monthly payment | Total interest | True cost |
|---|---|---|---|
| 3 years | $622.12 | $2,396 | $22,396 |
| 5 years | $400.76 | $4,046 | $24,046 |
| 8 years | $277.68 | $6,657 | $26,657 |
Dropping the payment by $344 (3-year vs. 8-year) nearly triples the interest. Need the longer term for breathing room? Take it, then use the extra-payment box above. You get a low required payment and most of the savings of a short term.
Loan payment examples: new car, used car, consolidation
Three common loans, priced honestly - each card is this calculator's own output. Click one to load it with your numbers.
- New-car buyer
$35,000 SUV at 6.9% for 6 years
Typical dealership financing on a new vehicle, no extra payments.
$595.04/month. and $7,843 in interest, so the true sticker price is $42,843.
Load this scenario in the calculator → - Used-car buyer
$18,000 at 8.5% for 4 years
A used car with the higher APR lenders charge on older vehicles, kept to a short term.
$443.67/month, $3,296 total interest - the shorter term keeps the damage contained.
Load this scenario in the calculator → - Card consolidator
$12,000 of card debt into an 11% loan
Rolling 24% credit-card balances into a 3-year personal loan at 11%.
$392.86/month, $2,143 interest - versus roughly $4,900 paying the same debt off at 24%.
Load this scenario in the calculator →
Common questions about loan payments
How is a loan payment calculated?
Monthly payment = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r is the monthly rate (APR ÷ 12), and n is the number of monthly payments. A $20,000 loan at 7.5% APR over 5 years works out to $400.76 per month - the exact math this page runs.
What is amortization?
Paying a loan down with fixed payments whose interest/principal split shifts over time. Interest is charged on what you still owe. So early payments are mostly interest. Later ones mostly clear the debt. The year-by-year table above shows that shift for your loan.
Does paying extra on a loan really help?
Yes - every extra dollar goes straight to principal, permanently shrinking the balance that interest is charged on. Even $50 extra per month on a 5-year, $20,000 loan at 7.5% saves roughly $550 in interest and finishes about 7 months early. The earlier in the loan, the bigger the effect.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal; APR adds most fees on top, reflecting the loan's true annual cost. Two offers with identical rates can carry very different APRs - always compare APR to APR. Full breakdown in our APR vs. APY guide.
Is it better to take a longer loan term with a lower payment?
A longer term lowers the monthly payment but raises the total interest - often dramatically. Stretching that $20,000 loan from 5 years to 8 cuts the payment by about $123/month but adds roughly $2,700 of interest. Choose the shortest term whose payment fits your budget.
What credit score do I need for a good rate?
Most lenders reserve their best advertised APRs for scores above roughly 740, with meaningful rate jumps below 670. Even one tier of improvement can save thousands over a multi-year loan, which is why it often pays to improve your score before borrowing rather than after.