Loan Calculator

Calculate monthly payments for any type of loan including personal loans, student loans, and more. See your total interest and payment schedule.

Total amount you need to borrow

Annual interest rate (APR)

How long to repay the loan (can use decimals, e.g., 2.5 years)

M = P x [r(1 + r)^n] / [(1 + r)^n - 1], where M = monthly payment, P = principal, r = monthly interest rate, n = number of payments
For a $20,000 loan at 7.5% APR for 5 years: Monthly payment = $400.76, Total interest = $4,045.60, Total paid = $24,045.60

How is a loan payment calculated?

Loan payments are calculated using the amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is monthly payment, P is principal, r is monthly interest rate, and n is number of payments. This ensures you pay off both principal and interest by the end of the term.

What is the difference between APR and interest rate?

Interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus additional fees like origination fees, closing costs, and insurance. APR gives a more complete picture of the loan's true cost.

Should I get a shorter or longer loan term?

Shorter terms (2-3 years) have higher monthly payments but lower total interest. Longer terms (5-7 years) have lower monthly payments but cost more in interest overall. Choose based on your budget and how quickly you want to be debt-free.

How can I pay off my loan faster?

Make extra payments toward principal, pay bi-weekly instead of monthly, round up payments, or make one extra payment per year. Even small additional payments can significantly reduce your loan term and total interest paid.