Calculate monthly loan payments, total interest, and see the full amortization schedule
Enter your loan amount, interest rate, and term to calculate your monthly payment. This calculator works for personal loans, auto loans, student loans, and business loans. It shows both your monthly payment and the total cost of borrowing.
The loan term affects your payment significantly—shorter terms mean higher monthly payments but less total interest. Use this calculator to compare different scenarios before committing to a loan.
Let's say you're financing a used car with a $15,000 auto loan at 7.5% interest for 48 months:
Now let's compare that to a 60-month term:
Key insight: The 48-month loan saves $694.80 in interest but costs $60 more per month. Choose based on what fits your budget.
Understanding your loan payment helps you make smarter financial decisions:
According to the Consumer Financial Protection Bureau, borrowers who shop around for loans can save thousands of dollars in interest over the life of the loan.
Most loans use simple interest calculated on the remaining principal balance each month. In the early payments, most of your money goes toward interest. As you pay down the balance, more goes toward principal.
| Payment # | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $357.40 | $264.15 | $93.25 | $14,735.85 |
| 12 | $357.40 | $289.52 | $67.88 | $12,045.23 |
| 24 | $357.40 | $317.37 | $40.03 | $9,119.87 |
| 36 | $357.40 | $347.68 | $9.72 | $3,978.52 |
| 48 | $357.40 | $357.40 | $0 | $0 |
Notice how the interest portion decreases over time while the principal portion increases. This is called amortization.
Loan interest uses the amortization formula: Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly interest rate (annual rate ÷ 12), and n is total number of payments.
A fixed rate loan keeps the same interest rate and monthly payment for the entire term. A variable rate loan can change based on market conditions—your payment could go up or down. Fixed rates are predictable; variable rates can save money if rates drop.
Yes, paying extra can save you significant interest and help you pay off faster. However, check for prepayment penalties first—some lenders charge fees for early payoff. Also, specify that extra payments go toward principal, not future payments.
Compare the APR (Annual Percentage Rate), not just the interest rate. APR includes fees and gives you the true cost. Also compare total interest paid over the full term. Our calculator shows both monthly payment and total cost.
Absolutely! Interest rates vary between lenders by 0.25% to 1% or more. Get quotes from at least 3 lenders. If you have good credit, lenders may match competitor rates to win your business. Also negotiate origination fees—some will waive them.