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Loan Calculator

Calculate monthly loan payments, total interest, and amortization schedule for personal loans, auto loans, student loans, and more.

Loan Amount ($)

Annual Interest Rate (%)

Loan Term (years)

$0.00

Monthly Payment

Total Payments: $0.00

Total Interest: $0.00

Principal Amount: $0.00

About This Loan Calculator

Our free loan calculator helps you estimate monthly payments for any type of loan including personal loans, auto loans, student loans, and home equity loans. Understanding your loan payment helps you budget effectively and make informed borrowing decisions. For specific loan types, try our mortgage calculator for home loans or our car loan calculator for vehicle financing.

The calculator uses the standard amortization formula to provide accurate monthly payment amounts based on the loan amount, interest rate, and term. It also shows total interest paid and total payment amount over the life of the loan. To understand how interest compounds over time, use our compound interest calculator.

How to Use the Loan Calculator

Enter the Loan Amount: This is the total amount you plan to borrow from the lender.
Enter the Interest Rate: Input the annual interest rate (APR) offered by your lender. This significantly affects your monthly payment.
Enter the Loan Term: Choose how many years you'll take to repay the loan. Common terms are 3, 5, or 7 years for personal and auto loans.
Click Calculate: Get instant results showing your monthly payment and total loan costs.

Understanding Your Loan Results

Monthly Payment: The fixed amount you'll pay each month for the life of the loan. This includes both principal (loan amount) and interest (cost of borrowing).

Total Payments: The sum of all monthly payments over the entire loan term. This shows the total amount you'll pay back to the lender.

Total Interest: The total amount of interest you'll pay over the life of the loan. This is the cost of borrowing the money and depends on the interest rate and loan term.

Loan Payment Formula

The monthly payment for a loan is calculated using this formula:

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where: M = Monthly payment, P = Principal loan amount, r = Monthly interest rate (annual rate ÷ 12), n = Total number of payments (years × 12)

Types of Loans

Personal Loans

Unsecured loans for personal expenses like debt consolidation, home improvements, or medical bills. Typical interest rates range from 6% to 36% APR with terms of 1 to 7 years. No collateral required, but interest rates depend heavily on credit score.

Auto Loans

Secured loans for vehicle purchases where the car serves as collateral. Typical rates range from 3% to 10% APR with terms of 3 to 7 years. Secured nature means lower rates than personal loans, but the lender can repossess the vehicle if you default.

Student Loans

Education financing available from federal or private lenders. Federal rates are typically lower and more flexible. Terms usually range from 10 to 25 years. Federal loans offer income-driven repayment and potential forgiveness programs.

Home Equity Loans

Secured loans using your home's equity as collateral. Typical rates range from 5% to 10% APR with terms of 5 to 30 years. Interest may be tax-deductible if used for home improvements. Risk: foreclosure if you default.

Tips for Getting the Best Loan Rate

Improve Your Credit Score: Pay bills on time, reduce debt, and check your credit report for errors before applying.
Shop Around: Compare offers from multiple lenders including banks, credit unions, and online lenders.
Choose the Right Term: Shorter terms have higher payments but lower total interest. Find the balance that fits your budget.
Make a Larger Down Payment: For secured loans, this reduces the loan amount and may qualify you for better rates.
Consider Extra Payments: Making additional principal payments reduces total interest and shortens the loan term.

Frequently Asked Questions

How do I calculate my loan payment?

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 number of payments (years × 12). Our calculator does this automatically - just enter your loan details and get instant results.

What is APR?

APR (Annual Percentage Rate) is the yearly cost of a loan including interest and fees, expressed as a percentage. It's higher than the interest rate because it includes origination fees, closing costs, and other charges. Always compare APRs when shopping for loans.

What is amortization?

Amortization is the process of paying off a loan through regular payments over time. Each payment includes both principal and interest. Early payments are mostly interest, while later payments are mostly principal. An amortization schedule shows exactly how each payment is split.

Can I pay off my loan early?

Most loans allow early payoff without penalties, but always check your loan terms. Some lenders charge prepayment penalties to recoup lost interest. Making extra principal payments can save thousands in interest and help you become debt-free sooner.

What credit score do I need for a loan?

Minimum scores vary by loan type: personal loans typically require 600+, auto loans 500+, and mortgages 620+. Higher scores (720+) qualify for the best rates. If your score is low, consider improving it before applying or look for credit unions that may have more flexible requirements.

Should I choose a shorter or longer loan term?

Shorter terms have higher monthly payments but lower total interest. Longer terms have lower monthly payments but higher total interest. Choose based on your budget: if you can afford higher payments, shorter terms save money long-term. If you need lower payments for cash flow, longer terms provide flexibility.

What happens if I miss a loan payment?

Missing payments can result in late fees (typically $15-$30), credit score damage (stays on report for 7 years), and potential default. Contact your lender immediately if you anticipate missing a payment - they may offer hardship programs, payment deferment, or loan modification options.

Can I refinance my loan?

Yes, refinancing replaces your current loan with a new one, potentially at a lower rate or different term. This can reduce monthly payments or total interest paid. Consider refinancing if rates have dropped, your credit has improved, or you want to change your loan term. Watch for refinancing fees.