💳 Loan Calculator

Calculate monthly payments, total interest, and the true cost of any personal, auto, or student loan.

Loan Details

$
%
Monthly Payment
$0
Total Interest
$0
Total Payment
$0
Interest / Loan Ratio
0%
Number of Payments
0

How the Loan Calculator Works

This calculator uses the standard amortization formula to compute your fixed monthly payment. Every payment covers interest accrued since the last payment, with the remainder reducing the principal balance.

The Formula

Monthly Payment = P × r(1+r)^n / [(1+r)^n − 1]
Where P = principal, r = monthly rate, n = number of months

Types of Loans

  • Personal loans: Typically unsecured, 6–36% APR, used for debt consolidation, emergencies, or major purchases.
  • Auto loans: Secured by the vehicle, generally 3–10% APR depending on credit and new vs. used.
  • Student loans: Federal rates fixed by Congress; private rates vary widely based on credit.
  • Business loans: Rates vary significantly; SBA loans offer favorable terms for qualifying businesses.

How to Reduce Loan Costs

  • Improve your credit score before applying — even 50 points can lower your rate significantly
  • Make extra payments — every dollar above minimum goes straight to principal
  • Choose a shorter term — higher payments, but far less total interest
  • Refinance if rates drop or your credit improves after origination
  • Avoid prepayment penalties — check the loan agreement before making extra payments
What's the difference between APR and interest rate? +
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees like origination fees, making it a better measure of the true loan cost for comparison shopping.
Does paying off a loan early hurt my credit? +
Generally no — paying off a loan improves your debt-to-income ratio. However, closing a credit account can slightly reduce your average account age. The savings on interest almost always outweigh any temporary credit score dip.