Loan Calculator
Calculate monthly loan payments, total interest and total repayment.
Whether it's a personal loan, an auto loan, or a business loan, the math behind the monthly payment is the same amortizing-loan formula banks use. Enter the amount, rate, and term to see your payment and total cost.
The formula behind the number
Your payment is calculated so that, after the last payment, the loan balance hits exactly zero — with interest charged only on what's still owed. That's why a longer term lowers your monthly payment but increases the total interest you pay: you're carrying a balance (and paying interest on it) for longer.
Term length is a trade-off, not a free lunch
Stretching a $20,000 loan from 3 years to 5 years might cut your monthly payment by a third, but it can add thousands in extra interest over the life of the loan. If you can comfortably afford the higher payment, the shorter term is almost always cheaper overall.
Frequently asked questions
What's the difference between APR and interest rate?
The interest rate is just the cost of borrowing the principal. APR (annual percentage rate) rolls in certain fees too, giving a more complete picture of the loan's true cost — always compare APRs, not just headline rates, when shopping between lenders.
Can I pay off a loan early to save interest?
Usually yes, and it typically does save interest since you stop accruing charges on the remaining balance. Check your loan agreement for a prepayment penalty first — some loans charge a fee for paying off early, though this is uncommon for personal loans.