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
$0
- 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.
Where every dollar of your payments goes
Year-by-year payoff
| Year | Principal paid | Interest paid | Remaining balance |
|---|
How to use this 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. If you must take the longer term for breathing room, pair it with the extra-payment field above — you get the flexibility of the low required payment and the savings of the 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 →
Frequently asked questions
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 the remaining balance, so early payments are interest-heavy and later ones principal-heavy. 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.