Loan Calculator
Monthly payment, total interest, and amortization for any personal or general loan
Everything you need to understand your loan
See the real cost of any loan before you sign — monthly payment, total interest, and full payoff breakdown.
Any loan type
Works for personal loans, student loans, medical financing, home improvement loans, or any fixed-rate installment debt.
Full cost view
See not just the monthly payment but the total you'll repay and how much of that is interest versus principal.
Flexible terms
Enter your term in years or months for precision — useful for short-term loans quoted in months.
PDF summary
Download a clean loan summary to compare lenders, keep for records, or take to a financial counselor.
Compare scenarios
Run different amounts, rates, and terms side by side to find the loan structure that fits your budget.
100% private
All calculations happen in your browser. No data is sent to any server or stored.
When to use it
Before applying
Know your payment before the bank does. Walk in prepared.
Comparing offers
Different lenders, same loan. See which deal actually costs less.
Setting a budget
Find the loan amount that keeps payments within your comfort zone.
Financial education
See how interest compounds and why rate matters more than you think.
Frequently Asked Questions
How is a loan payment calculated?
Lenders use the standard amortizing loan formula: payment = P × (r(1+r)^n) / ((1+r)^n − 1), where P is the principal, r is the monthly rate (annual rate ÷ 12), and n is the number of months. Each fixed payment covers that month's interest plus a growing slice of principal, so the loan reaches exactly zero at the end of the term.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal only. APR (annual percentage rate) includes the interest rate plus any fees, such as origination fees, points, or closing costs, expressed as a yearly rate. APR gives a truer picture of the total cost of a loan and is the better number to compare when shopping between lenders.
How does loan term length affect my payment?
A longer term lowers the monthly payment — your debt is spread over more months — but dramatically increases the total interest paid because you owe money for longer. A shorter term means a higher monthly payment but far less total interest. Use the calculator to compare both and pick the balance your budget can support while keeping total cost reasonable.
Does paying extra reduce total interest?
Yes — significantly. Extra payments go directly to principal, which shrinks the balance that future interest is charged on. Even one extra payment per year, or rounding up to the nearest hundred, can cut months off a loan and save a meaningful amount in interest. Many lenders allow prepayment without penalty, but check your loan agreement first.
What happens if I miss a loan payment?
Missing a payment typically triggers a late fee and may be reported to credit bureaus after 30 days, hurting your credit score. Interest continues to accrue on the outstanding balance. If payments are missed repeatedly, the lender may declare the loan in default, which can lead to collection action and lasting credit damage. Contact the lender proactively if you anticipate trouble — many offer hardship plans.
Understanding Loan Payments
A loan payment looks deceptively simple — a fixed amount every month — but it is actually a carefully engineered split between interest and principal that changes with every payment. Understanding how that split works gives you the tools to make smarter borrowing decisions and pay less over the life of any loan.
How amortization works
Every payment on a fixed-rate loan goes to two places: interest on the current outstanding balance, and principal repayment that reduces that balance. Because interest is charged as a percentage of the remaining balance, early payments are mostly interest — the balance is large, so the interest charge is large. As the balance falls, each payment covers less interest and more principal. This is why your loan balance drops slowly at first and accelerates toward the end.
The real cost of a low monthly payment
Lenders often market low monthly payments by offering long terms. A $10,000 personal loan at 10% over 3 years costs $323/month and $1,616 in total interest. The same loan over 7 years costs $166/month — but $3,924 in interest, 2.4 times more. The lower payment feels like a win, but you pay for it dearly in total cost. Always compare total interest paid, not just monthly payment, when choosing a loan term.
How extra payments accelerate payoff
Because interest is calculated on the remaining balance, every extra dollar of principal you pay eliminates future interest on that dollar for the remaining life of the loan. An extra $50/month on a 5-year loan at 8% can cut months off the term and save hundreds in interest. The earlier in the loan's life you make extra payments, the more they save — because you have more remaining payments for that eliminated balance to compound through.
Choosing the right loan structure
The best loan structure balances an affordable monthly payment against a reasonable total cost. A rule of thumb: keep total debt payments (loan, car, credit cards, student loans) below 36% of gross monthly income. Use this calculator to find the highest payment your budget can support comfortably — then choose the shortest term that keeps your payment at or below that figure. This minimizes total interest without straining your monthly cash flow.