Loan Calculator

Enter the loan amount (principal), the annual interest rate, and the loan term (in years or months). The calculator uses the standard amortization formula to compute the fixed monthly payment: each payment covers interest on the remaining balance plus principal. It also shows total interest over the life of the loan and can display an amortization schedule so you see how much of each payment goes to principal vs. interest.

The interest rate is the percentage charged on the principal (e.g., 6% per year). APR (Annual Percentage Rate) includes that rate plus certain fees and costs (e.g., origination fees) spread over the loan term, so it reflects the total cost of borrowing. APR is usually higher than the stated rate and is useful for comparing offers from different lenders. This calculator uses the interest rate to compute the payment; for a truer cost comparison, you could convert APR to an effective rate or use the APR to derive an equivalent payment.

You can reduce total interest by (1) making extra principal payments when you can—even small, irregular ones help; (2) choosing a shorter term (e.g., 36 months instead of 60) for higher monthly payments but less interest overall; and (3) refinancing to a lower rate if rates have dropped or your credit has improved. Paying extra early in the term has the biggest impact because more of each payment goes to interest at the start.

The calculator works for any fixed-rate installment loan: personal loans, auto loans, student loans, home equity loans, and similar products where you borrow a lump sum and repay in equal monthly payments. It does not apply to interest-only loans, credit cards, or variable-rate loans where the payment changes. Enter the amount you are borrowing, the annual rate your lender quotes, and the term to see the payment and total interest.

Yes. The calculator uses the standard amortization formula used by banks and the Consumer Financial Protection Bureau (CFPB): the monthly payment is computed from principal, annual interest rate, and number of payments. The results are accurate for fixed-rate loans. Your actual offer may differ because of fees, APR vs. stated rate, rounding, or lender-specific rules. Use the calculator to compare scenarios (e.g., different terms or rates); for your exact payment, refer to your loan agreement or lender.

Our loan calculations use the standard amortization formula for a fixed-rate loan: the monthly payment is calculated from the loan amount, annual interest rate, and term. This matches the method used in CFPB materials and by most lenders. We do not apply lender-specific fees or rounding rules; for your exact payment and APR, use the numbers provided in your loan estimate or closing documents.