Free Loan Calculator
Calculate your monthly loan payment, the total interest you will pay, and the full cost of borrowing. Works for personal, auto and student loans.
Loan Calculator
Enter your loan details below to calculate your monthly payment.
$525.05
| Loan amount | $25,000.00 |
|---|---|
| Monthly payment | $525.05 |
| Number of payments | 60 |
| Total interest paid | $6,502.79 |
| Origination fee | $0.00 |
| Total of all payments | $31,502.79 |
| Payoff time | 5 years |
This is an estimate. Your actual payment may vary based on your lender and other factors.
We don't store your inputs. No sign-up required.
Every figure on this page comes from the same amortisation formula lenders use, and the guidance is checked against published material from the Consumer Financial Protection Bureau and the Federal Reserve's consumer credit data. More about who we are.
Suzon Mahmud
Suzon Mahmud is a consumer-finance writer covering mortgages, loans and debt repayment.
Estimates for information only, not financial advice. Every figure here is illustrative and depends on the numbers you enter. Confirm your own rate and terms with a licensed lender before borrowing. See our full disclaimer.
Your Estimated Monthly Payment
The result card above leads with the number most people want first: the monthly payment — the amount leaving your account every month for the whole term, and the figure that has to fit your budget.
Underneath it sit two figures that matter just as much but rarely appear on lender landing pages. Total interest is what the loan costs you on top of the amount you borrowed — pure cost, nothing you keep. Total cost is the principal plus that interest plus any origination fee: the real amount you hand over across the full term.
A loan can look comfortable monthly and still be expensive overall — exactly what happens when a long term is used to shrink the payment. Reading all three together is the point of the tool.
What Is a Loan Calculator?
A loan calculator is a free tool that estimates your monthly payment from three inputs: the amount you borrow, the interest rate, and the length of the loan. It also shows the total interest and the full cost of borrowing, so you can compare offers on equal terms before you sign anything.
It is useful for anyone weighing up a personal, auto, student or debt consolidation loan — whether you are checking that a payment fits your budget, testing how a shorter term changes the total, or sanity-checking a quote a lender has already given you.
Enter your own numbers in the calculator at the top of this page and the results update as you type.
How Is Your Loan Payment Calculated?
Nearly every instalment loan uses the same amortisation formula, which finds the single level payment that clears the balance exactly at the end of the term:
M = P × [ r(1+r)n ] / [ (1+r)n − 1 ]
where M is the monthly payment, P is the principal (the amount borrowed), r is the monthly interest rate (the annual rate divided by 12, then by 100), and n is the total number of monthly payments.
A worked example: borrow $10,000 at 10% APR over 60 months. The monthly rate is 0.10 ÷ 12 = 0.008333 and n is 60, which gives $212.47 a month. Across 60 payments that is $12,748 in total, so the interest cost is roughly $2,748. Four inputs drive that result.
Principal
The amount you actually borrow. Every extra dollar raises both the monthly payment and the total interest, because interest is charged on the outstanding balance. If a lender offers you more than you asked for, the surplus is not free money — it carries the same rate as the rest.
Interest Rate
The yearly cost of borrowing, expressed as a percentage. Rate has an outsized effect on total cost: on that same $10,000 over 60 months, moving from 10% to 14% raises the payment to about $233 and the total interest to roughly $3,963 — over $1,200 more for the identical loan. This is why comparing several offers is worth the effort.
Loan Term
How many months you spread the balance over. A longer term always lowers the monthly payment and almost always raises the total interest, because you are borrowing for longer. It is the lever most borrowers reach for first, and the one most likely to quietly increase what the loan costs.
Fees and APR
The interest rate covers the cost of the money alone. The APR also folds in lender fees, expressed as a yearly rate, so it usually sits a little above the headline rate — which makes it the fairer number when comparing offers. An origination fee is often deducted from the amount advanced, so a $10,000 loan with a 5% fee may put only $9,500 in your account while you still repay the full $10,000. The calculator above has a field for that fee.
Loan Payment by Amount
The table below shows what different loan sizes cost at 10.00% APR over 60 months. Because the rate and term are held constant, the figures scale in a straight line — doubling the amount doubles both the payment and the interest.
| Loan amount | Monthly payment | Total interest |
|---|---|---|
| $5,000 | $106.24 | $1,374 |
| $10,000 | $212.47 | $2,748 |
| $15,000 | $318.71 | $4,122 |
| $20,000 | $424.94 | $5,496 |
| $25,000 | $531.18 | $6,871 |
| $50,000 | $1,062.35 | $13,741 |
These figures are illustrative. They assume a fixed 10.00% APR, a 60-month term and no fees. Your own rate depends on your credit profile, the lender and the market when you apply, and a different term changes every number here. Run your actual numbers in the calculator above.
Understanding Your Loan Results
Three numbers describe any loan, and confusing them is how people end up in agreements they later regret.
The monthly payment is an affordability question: can you pay this every month for the whole term, including the months when the heating bill spikes?
The total interest is a value question. On a $25,000 loan at 10% over five years you repay about $31,871 — the extra $6,871 buys you nothing except the use of the money sooner.
The total cost is principal plus interest plus fees: the complete amount that leaves your account, and the only figure that lets you compare two genuinely different offers.
Why a lower rate cuts total interest: interest is charged each month on whatever you still owe. A lower rate means a smaller charge every month, so more of your payment clears the balance — which in turn shrinks next month's interest.
Why a shorter term cuts total interest: you are simply borrowing for fewer months. Take $10,000 at 10%. Over 60 months you pay about $2,748 in interest; over 36 months the payment rises to roughly $323 but the interest falls to about $1,616. You pay $111 more each month and save over $1,100 overall. That trade-off — higher payment, lower total — is the single most useful thing this calculator shows you.
Fixed vs Variable Interest Rates
A rate is either locked for the term or free to move with the market. The difference affects your budget, not just your total cost.
| Fixed rate | Variable rate | |
|---|---|---|
| Monthly payment | Same every month | Can rise or fall |
| Total cost | Known at the start | Not known in advance |
| Starting rate | Often slightly higher | Often slightly lower |
| If market rates rise | You are unaffected | Your payment increases |
| If market rates fall | You keep paying the old rate | Your payment decreases |
| Budgeting | Straightforward | Requires headroom |
Which to choose? There is no universally correct answer, and anyone who tells you otherwise is guessing about future rates. A fixed rate suits you if a stable payment matters more than squeezing out the lowest possible cost. A variable rate can work if you could absorb a higher payment without difficulty. Most fixed-term personal loans in the US are fixed-rate by default; variable rates are more common on credit lines and some student loans.
Secured vs Unsecured Loans
A secured loan is tied to an asset — a car, a home, sometimes a savings account. If you stop paying, the lender can take that asset to recover what it is owed. Because this reduces the lender's risk, secured loans usually carry lower interest rates and can allow larger amounts or longer terms. Mortgages and auto loans are the familiar examples.
An unsecured loan has no collateral behind it. The lender relies on your credit history and income alone, so the risk is higher and the rate is usually higher to match. Most personal loans, student loans and credit cards are unsecured.
The trade-off is serious: a secured loan can save you real money in interest, but the asset is genuinely at risk if your circumstances change. Never secure a loan against your home to consolidate unsecured debt without understanding that you are converting a debt that could not cost you your house into one that could.
Types of Loans
The maths above applies to every instalment loan, but terms, rates and rules differ.
Personal loans
Usually unsecured, typically $1,000 to $50,000, with terms from one to seven years and a fixed rate. Rates vary widely by credit profile, and origination fees are common — check whether the fee is deducted from the amount you receive.
Auto loans
Secured against the vehicle, usually 36 to 84 months. Rates are generally lower than personal loans because of the collateral, but a long term on a depreciating asset can leave you owing more than the car is worth. Our car payment calculator handles trade-ins, sales tax and down payments too.
Student loans
Federal and private student loans behave very differently. Federal loans have set rates, income-driven repayment options and hardship protections; private loans are priced on credit and often lack those safeguards. Because repayment can stretch over decades, small rate differences compound into large sums.
Home loans
Mortgages are secured against the property, run 15 to 30 years, and typically carry lower rates than unsecured borrowing — but the monthly payment also includes property tax, homeowners insurance and often PMI. Use our mortgage calculator for those, since a plain loan calculator will understate what you actually pay each month.
How Extra Payments Save You Money
Paying more than the scheduled amount is a reliable way to cut what a loan costs, and it works because of how amortisation is built. Your scheduled payment covers that month's interest first; anything above it goes entirely to the principal. A smaller balance means less interest next month, so more of the following payment attacks the principal.
A worked example. Take the $10,000 loan at 10% APR over 60 months — $212.47 a month, $2,748 of total interest. Add just $50 a month:
- The loan clears in 47 months instead of 60 — 13 months early.
- Total interest falls from $2,748 to about $2,081.
- You save roughly $667 for $50 a month you were going to spend anyway.
Timing matters. An extra payment in month three saves far more than the same payment in month fifty, because it removes interest from every remaining month. If you can only overpay occasionally, do it early.
Two things to confirm with your lender first: whether an early repayment charge applies, and that overpayments reduce the principal rather than being held as a credit against your next scheduled payment. The extra monthly payment field above models this for your own loan, and our debt payoff calculator compares the avalanche and snowball strategies if you are juggling several balances.
Amortization Schedule Explained
An amortization schedule is a month-by-month table showing how every payment splits between interest and principal, and what balance is left afterwards. Your payment stays the same throughout, but what it does changes completely from the first month to the last.
Here is the first year of a $10,000 loan at 10% APR over 60 months, with a level payment of $212.47:
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $212.47 | $83.33 | $129.14 | $9,870.86 |
| 2 | $212.47 | $82.26 | $130.21 | $9,740.65 |
| 3 | $212.47 | $81.17 | $131.30 | $9,609.35 |
| 4 | $212.47 | $80.08 | $132.39 | $9,476.96 |
| 5 | $212.47 | $78.97 | $133.50 | $9,343.46 |
| 6 | $212.47 | $77.86 | $134.61 | $9,208.85 |
| 7 | $212.47 | $76.74 | $135.73 | $9,073.12 |
| 8 | $212.47 | $75.61 | $136.86 | $8,936.26 |
| 9 | $212.47 | $74.47 | $138.00 | $8,798.26 |
| 10 | $212.47 | $73.32 | $139.15 | $8,659.11 |
| 11 | $212.47 | $72.16 | $140.31 | $8,518.80 |
| 12 | $212.47 | $70.99 | $141.48 | $8,377.32 |
After twelve payments totalling $2,549.64 you have paid $926.96 in interest and reduced the balance by only $1,622.68. More than a third of your first year went to interest rather than to the debt.
Why early payments are mostly interest: interest is charged on the outstanding balance, and the balance is largest at the start. In month one, $83.33 of your $212.47 is interest; by month twelve that has fallen to $70.99, and by the final month it is a few dollars. This is why overpaying early is so effective, and why refinancing late in a term saves less than people expect.
How to Get a Lower Interest Rate
The rate has the biggest effect on total cost, and it is more negotiable than most borrowers assume.
- Compare multiple lenders. Quotes for the same borrower can differ noticeably between banks, credit unions and online lenders. The CFPB recommends gathering several offers before committing.
- Improve your credit score first. If the loan is not urgent, a few months of on-time payments and lower card balances can move you into a better pricing tier. You can get free credit reports through the FTC's guidance on free credit reports.
- Add a co-signer. A creditworthy co-signer can lower the rate — but they are fully liable if you cannot pay, so treat it seriously.
- Choose a shorter term. Shorter terms often carry lower rates and less total interest, though the monthly payment is higher.
- Consider a secured loan. Collateral usually buys a lower rate — provided you accept that the asset is at risk.
- Negotiate. A written offer from one lender is leverage with another. Ask whether the rate can be matched or the origination fee waived.
One caution: each formal application can trigger a hard credit inquiry. Use pre-qualification tools that run a soft check where possible, and group hard inquiries into a short window.
How to Use This Loan Calculator
Enter your loan amount, pick the loan type and term, then add your interest rate. The results card updates as you type, showing the monthly payment, total interest and total cost. Add an extra monthly payment to see how much sooner the loan clears.
Read Full GuideFrequently Asked Questions
Lenders use the standard amortisation formula M = P x [ r(1+r)^n ] / [ (1+r)^n - 1 ], where P is the amount borrowed, r is the monthly interest rate and n is the number of monthly payments. The result is a level payment that covers that month's interest first, with the remainder reducing the balance. Because the balance shrinks each month, the interest portion falls and the principal portion grows.
At 10% APR over 60 months, a $10,000 loan works out at roughly $212 a month, with about $2,748 of total interest over the full term. Change either the rate or the term and the answer moves: the same $10,000 over 36 months costs more each month but far less in total interest. These figures are illustrative, so enter your own rate and term in the calculator above.
There is no single good rate, because pricing depends on your credit profile, income, the amount and the term, and rates move with the wider market. Rather than chasing a number, compare several written offers for the same amount and term and look at the APR, which includes fees. The Consumer Financial Protection Bureau recommends shopping around, as quotes for the same borrower can differ noticeably between lenders.
A fixed rate stays the same for the whole term, so your payment never changes and the total cost is known from day one. A variable rate is tied to a benchmark and can move up or down, so your payment can change during the term. Fixed gives certainty; variable may start lower but carries the risk of rising later.
Yes, spreading the same balance over more months lowers each payment. The trade-off is that you pay interest for longer, so the total interest and the total cost both rise. A $10,000 loan at 10% APR costs about $212 a month over 60 months but roughly $323 a month over 36 months, and the shorter term pays far less interest overall.
Often yes, but not always. Many personal loans allow overpayments at no cost, while some agreements apply an early repayment charge or prepayment penalty. Check your loan agreement or ask the lender directly before making a lump-sum payment, and confirm that extra money is applied to the principal rather than held as an advance payment.
An amortization schedule is a month-by-month table showing how each payment splits between interest and principal, and what balance remains afterwards. Early in the term most of each payment goes to interest because interest is charged on a larger balance. As the balance falls, more of every payment goes to principal, which is why overpaying early saves the most.
A secured loan is backed by an asset such as a car or a home, which the lender can repossess if you stop paying; because that lowers the lender's risk, the rate is usually lower. An unsecured loan has no collateral, so approval rests on your credit profile and the rate is usually higher. Most personal loans are unsecured, while mortgages and auto loans are secured.
Our Methodology
Payments are calculated with the standard fixed-rate amortisation formula shown above, applied monthly with no rounding until the figure is displayed. The tool assumes a fixed rate for the whole term and equal monthly payments. Where you enter an extra monthly payment, the loan is walked month by month so the shortened payoff time and the interest saved are exact rather than estimated.
Rates, terms, amounts and fees are estimates you supply; we do not quote rates, check your credit or contact lenders on your behalf. The 10.00% APR used in the tables on this page is an illustrative mid-range figure chosen to make the arithmetic easy to follow — it is not an offer, a prediction, or a claim about what you would be charged. For context on how consumer credit rates move, the Federal Reserve's G.19 consumer credit release publishes average rates, and the CFPB's consumer tools explain loan terms in plain language.
Variable-rate loans, interest-only periods, balloon payments, deferred-interest promotions and payday or title lending are outside the scope of this calculator. Table totals are rounded to the nearest dollar, so a total may differ by a dollar from the sum of its rounded parts.
Related Calculators
These free tools cover the rest of the picture:
- Home — every free calculator on the site in one place.
- Mortgage Calculator — monthly payment including taxes, insurance and PMI.
- Car Payment Calculator — auto payments with trade-in, sales tax and down payment.
- Debt Payoff Calculator — compare the avalanche and snowball methods.
- Paycheck Calculator — take-home pay after federal tax and FICA.
- Financial Tips & Guides — plain-English articles on rates, debt and budgeting.
- About — who writes this site and how the tools are built.
- Contact — report an error or suggest a calculator.
- Disclaimer — the limits of what these estimates can tell you.