Loan Calculator
Calculate monthly payments for personal loans, auto loans, and other fixed-rate loans.
Loan Details
Loan Amount
$
Interest Rate (APR)
%
Loan Term
months
Payment Summary
$0
Monthly Payment
Loan Amount
$0
Total Interest
$0
Total Cost
$0
Payoff Date
–
Principal vs Interest
0%
Interest
Principal $0
Interest $0
Cost Breakdown
How Loan Payments Work
Your monthly payment is calculated using the loan amount, annual interest rate (APR), and loan term. This calculator uses the standard amortization formula:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ – 1]
Where M = monthly payment, P = principal (loan amount), r = monthly interest rate (APR ÷ 12), and n = total number of payments.
APR vs Interest Rate
APR (Annual Percentage Rate) includes the interest rate plus any fees, giving you the true cost of borrowing. When comparing loans, always use APR for an accurate comparison.
A loan with a lower interest rate but higher fees might actually cost more than a loan with a slightly higher rate and no fees.
Tips to Get Better Loan Terms
- Check your credit score: A score above 740 typically qualifies you for the best rates. Each tier can mean 1-3% rate difference.
- Compare multiple lenders: Get quotes from at least 3-5 lenders. Credit inquiries within 14-45 days count as one.
- Consider shorter terms: A 36-month loan has higher payments but significantly less total interest than 60 months.
- Make a larger down payment: For auto loans, putting 20% down can reduce your rate and eliminate gap insurance needs.
Watch Out For
- Prepayment penalties: Some loans charge fees if you pay off early. Always ask before signing.
- Variable rates: This calculator assumes fixed rates. Variable rate loans can increase significantly over time.
- Origination fees: These are often 1-8% of the loan and are either added to your balance or deducted from your disbursement.
- Total cost, not just monthly: A longer term means lower payments but much more interest paid overall.