Productive ToolboxLoan Calculator
Calculate the monthly payment, total interest and amortization schedule for a car, personal or student loan, compare two loans and see what extra payments save.
See how much interest you save
Monthly Payment
$10,624
Principal
$500,000
Interest
$137,411
Total Payment
$637,411
Breakdown Percentage
Principal vs InterestNext step
Related tools
What This Loan Calculator Does
This loan calculator works out the monthly payment on any fixed-rate loan with equal payments (a car loan, personal loan, student loan or small business loan) and shows what the loan costs you in interest from the first payment to the last.
Put two offers side by side to see which is cheaper, open the month-by-month amortization schedule, or add an extra payment to see how much sooner you would be debt-free. Choose your own currency; the math is the same everywhere. For a home loan with property tax, insurance and PMI, use the mortgage calculator.
How a Loan Payment Is Calculated
Monthly payment M = P × r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P = amount borrowed, r = annual rate ÷ 12, n = number of monthly payments
Total interest = M × n − P
Example: $25,000 at 7% for 5 years. r = 0.07 ÷ 12 = 0.005833 and n = 60, so the payment is $495.03 a month. Over 60 payments you repay $29,701.80, of which $4,701.80 is interest.
Early payments are mostly interest, because interest is charged on a larger balance. As the balance falls, more of each payment goes to principal; the schedule tab shows this month by month.
How to Use the Loan Calculator
- 1Enter the loan amount: Type how much you are borrowing, after any down payment or trade-in.
- 2Enter the interest rate: Use the annual interest rate (APR) from your lender's offer.
- 3Set the term: Enter the length of the loan in years or months, for example 5 years or 60 months for a car loan.
- 4Read the payment and interest: The monthly payment, total interest and total cost update as you type.
- 5Compare, schedule or pay extra: Compare two loan offers side by side, open the month-by-month schedule, or add an extra monthly payment to see how much sooner you finish and how much interest you save.
Typical Loan Payments
| Loan | Amount | APR | Term | Monthly / total interest |
|---|---|---|---|---|
| Car loan | $35,000 | 6.5% | 5 years | $684.82 / $6,088.91 |
| Car loan, longer term | $35,000 | 6.5% | 6 years | $588.35 / $7,361.02 |
| Personal loan | $10,000 | 12% | 3 years | $332.14 / $1,957.15 |
| Student loan | $30,000 | 5.5% | 10 years | $325.58 / $9,069.46 |
Stretching the same car loan from 5 to 6 years lowers the payment by $96.47 a month but adds $1,272.11 of interest. Rates are examples only; use the APR from your own offer.
Tips to Pay Less Interest
- 💡Compare offers by APR, not the headline rate: APR includes most fees.
- 💡Choose the shortest term whose payment you can comfortably afford.
- 💡Make extra payments toward principal when you can, after checking there is no prepayment penalty.
- 💡A larger down payment or trade-in reduces the amount borrowed and every payment after it.
- 💡Improving your credit score before you apply can lower the rate you are offered.
Frequently Asked Questions
How is a monthly loan payment calculated?
For a fixed-rate loan, M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount borrowed, r the monthly rate (annual rate ÷ 12) and n the number of payments. A $25,000 loan at 7% for 5 years is $495.03 a month.
How much interest will I pay?
Multiply the payment by the number of payments and subtract the amount borrowed. On $25,000 at 7% over 60 months that is $495.03 × 60 − $25,000 = $4,701.80.
Is a shorter loan term better?
It raises the monthly payment but cuts total interest. The same $25,000 at 7% costs $771.93 a month over 3 years with $2,789.39 of interest, against $495.03 a month and $4,701.80 over 5 years.
How much do extra payments save?
Paying $100 more each month on $25,000 at 7% for 5 years clears the loan 11 months early and saves about $939 in interest, as long as your lender applies extra payments to the principal and has no prepayment penalty.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR adds most lender fees, so it is the better number for comparing offers. Enter APR here to see the true monthly cost if fees are rolled into the loan.
Can I use it for car, personal and student loans?
Yes, for any fixed-rate loan with equal monthly payments: auto loans, personal loans, student loans and small business loans. For a home loan with property tax, insurance and PMI, use the mortgage calculator.
What is EMI?
EMI (equated monthly installment) is the term used in India and some other countries for the same fixed monthly payment this calculator shows.
Is my data private?
Yes. Every calculation runs in your browser and nothing you enter is sent to a server.
Related Tools
Mortgage Calculator
Calculate monthly home loan payments.
Loan Interest Calculator (Property)
Calculate interest on land loans.
Down Payment Calculator
Calculate upfront payment.
Simple Interest Calculator
Calculate simple interest and total amount based on principal, rate, and time instantly.
Compound Interest Calculator
Calculate compound interest and visualize investment growth over time.
Salary Calculator
Convert annual salary to hourly, monthly, weekly.
Percentage Calculator
Find percentage, increase, decrease.
Currency Format Previewer
Show numbers in different global currencies.
Golden Ratio Calculator
Split number into 1.618 golden ratio parts.
Percentage Increase/Decrease
Calculate % change between two numbers.
Fuel Cost Calculator
Calculate trip cost based on distance and MPG.
Ohm's Law Calculator
Calculate Voltage, Current, or Resistance instantly using Ohm's Law.