💰 Finance & Investing

Loan Calculator

Calculate monthly loan payment for any personal, auto, or business loan. Free loan calculator with amortization.

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What This Calculator Tells You

This loan calculator works out the fixed monthly payment for an amortizing loan — a personal loan, auto loan, student loan or small-business term loan — along with the total interest and total amount you will repay.

It is most useful for comparing offers: a lower payment over a longer term often costs far more in interest.

What to Enter

Loan amount ($) — the amount borrowed, after any down payment. If the lender deducts an origination fee from the funds, enter the full amount you owe.
Annual rate (%) — the nominal interest rate. If you have the APR, it already includes most fees and gives a better comparison between lenders.
Term (years) — length of the loan. Monthly payments are assumed.

Worked Examples

1. A $25,000 auto loan

7.5% for 5 years.

Monthly payment $500.95, total interest $5,056.92, total repaid $30,056.92.

2. Comparing two terms on the same loan

$35,000 at 6.9%.

4 years: $836.50/month, $5,151.79 interest.
6 years: $595.04/month, $7,842.59 interest — about $2,690 more for a lower payment.

3. A high-rate personal loan

$10,000 at 22%.

3 years: $381.90/month, $3,748.56 interest.
5 years: $276.19/month, $6,571.35 interest — interest climbs to two-thirds of the amount borrowed.

How It’s Calculated

Same as mortgage: Payment = (P × r × (1+r)^n) ÷ ((1+r)^n − 1).

P: Principal amount
r: Interest / discount rate (decimal per period)
n: Number of periods or sample size

How to Read Your Result

Total interest is the true cost of borrowing — compare it, not just the payment.
Longer terms lower the payment but increase total interest, and you stay in debt longer.
Rate matters most on long loans. A one-point rate cut saves more on a 7-year loan than on a 2-year loan.
Next step: make sure the new payment keeps your debt-to-income ratio healthy.

Common Mistakes to Avoid

Comparing payments instead of total cost across different terms.
Ignoring fees. Origination fees of 1–8% are common on personal loans; compare APRs.
Assuming variable rates stay fixed. This calculator assumes a fixed rate for the full term.
Forgetting prepayment. Extra payments toward principal cut total interest — check the loan allows them without penalty.

Built and maintained by GenAlpha Tools Editorial. Formula tested against known answers and edge cases · last reviewed October 2026. How we calculate · Report an error

When to Use This Calculator

Compare loan offers with different rates and terms.
Find a payment that fits your monthly budget.
See how much a shorter term saves in interest.
Plan a business equipment or expansion loan.

Frequently Asked Questions

How is the monthly payment calculated?

Payment = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r the monthly rate (annual rate ÷ 12) and n the number of monthly payments.

What is the difference between interest rate and APR?

The interest rate is the cost of borrowing the principal. APR includes the rate plus most lender fees, expressed as a yearly rate, so it is better for comparing offers.

Can I use this for a mortgage?

Yes for principal and interest. For taxes, insurance and PMI, use the mortgage calculator.

Does paying extra each month help?

Yes. Extra principal payments shorten the loan and reduce total interest, as long as your lender has no prepayment penalty.

Do you store the values I enter?

No. All calculations happen in your browser. Your data never leaves your device.

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