About This Tool
The loan calculator estimates your monthly payment and total interest for any type of loan—personal, auto, student, or business. Just enter the loan amount, interest rate, and term, and you'll see a full amortization breakdown. This tool is invaluable when comparing loan offers from different lenders or deciding how much you can afford to borrow. It also helps you understand how extra payments can save you money on interest.
How It Works
It uses the standard amortization formula: M = P * [r(1+r)^n] / [(1+r)^n - 1], where M is the monthly payment, P is the principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (years times 12). The calculator then generates an amortization schedule showing each payment's split between principal and interest.
Examples
- A $30,000 auto loan at 6% APR for 5 years results in a monthly payment of about $580 and total interest of $4,799.
- A $15,000 personal loan at 10% APR for 3 years gives a monthly payment of $484 and total interest of $2,424.
Pro Tips
- Always use the APR (Annual Percentage Rate) including fees, not just the nominal rate, for an accurate comparison.
- Consider making biweekly payments instead of monthly—you'll make 26 half-payments (13 full payments per year), reducing interest faster.
- Check the loan's prepayment penalty clause before committing; some loans charge fees for paying off early.