Loan Calculator
Calculate monthly payments, total interest, and total cost on personal loans.
Amortization Schedule
| # | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $188.71 | $147.05 | $41.67 | $9,852.95 |
| 2 | $188.71 | $147.66 | $41.05 | $9,705.30 |
| 3 | $188.71 | $148.27 | $40.44 | $9,557.02 |
| 4 | $188.71 | $148.89 | $39.82 | $9,408.13 |
| 5 | $188.71 | $149.51 | $39.20 | $9,258.62 |
| 6 | $188.71 | $150.13 | $38.58 | $9,108.48 |
| 7 | $188.71 | $150.76 | $37.95 | $8,957.72 |
| 8 | $188.71 | $151.39 | $37.32 | $8,806.34 |
| 9 | $188.71 | $152.02 | $36.69 | $8,654.32 |
| 10 | $188.71 | $152.65 | $36.06 | $8,501.66 |
| 11 | $188.71 | $153.29 | $35.42 | $8,348.37 |
| 12 | $188.71 | $153.93 | $34.78 | $8,194.45 |
| 13 | $188.71 | $154.57 | $34.14 | $8,039.88 |
| 14 | $188.71 | $155.21 | $33.50 | $7,884.67 |
| 15 | $188.71 | $155.86 | $32.85 | $7,728.81 |
| 16 | $188.71 | $156.51 | $32.20 | $7,572.30 |
| 17 | $188.71 | $157.16 | $31.55 | $7,415.14 |
| 18 | $188.71 | $157.82 | $30.90 | $7,257.32 |
| 19 | $188.71 | $158.47 | $30.24 | $7,098.85 |
| 20 | $188.71 | $159.13 | $29.58 | $6,939.71 |
| 21 | $188.71 | $159.80 | $28.92 | $6,779.92 |
| 22 | $188.71 | $160.46 | $28.25 | $6,619.45 |
| 23 | $188.71 | $161.13 | $27.58 | $6,458.32 |
| 24 | $188.71 | $161.80 | $26.91 | $6,296.52 |
How It Works
- 1
Enter loan details
Input the loan amount, annual interest rate, and loan term in years.
- 2
Review payment breakdown
See monthly payment, total interest, and total amount you'll pay back.
- 3
Compare loan options
Adjust rate or term to compare scenarios. Shorter terms mean higher payments but less total interest.
Understanding Loan Payments
Personal loans, auto loans, and student loans all use the same amortization formula as mortgages: Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1]. What makes loan math important is understanding how dramatically interest rate and term length affect total cost. A $20,000 auto loan at 5% for 5 years costs $2,645 in total interest. Extending to 7 years drops the payment but increases total interest to $3,761 — a 42% increase. Higher rates amplify this: at 10% for 5 years, total interest is $5,496, more than double. Our calculator shows monthly payment, total interest, and total amount paid.
Common pitfalls
Simple-interest auto loans accrue interest daily, not monthly. Paying 10 days early on a $25,000 loan at 7% saves roughly $48 in interest; paying 10 days late costs about the same. Amortized mortgages use fixed monthly periods, so timing affects the total less.
Rule of 78s (sum-of-digits) prepayment penalties still exist on some subprime loans of 60 months or less (federal law 15 USC §1615 bars it on longer-term consumer refinancings). The formula front-loads the interest, so paying a 48-month loan off halfway through does not save half the interest. Check the contract for 'Rule of 78' or 'sum-of-digits' language before signing.
0% financing often hides a non-discounted sticker price. A $30,000 car at 0% over 60 months can cost $2,000-$3,000 more than the same car negotiated for cash. Ask for the cash price first, then decide if the 0% loan beats it.
Payment-focused shopping hides total cost. 'Just $299/month' on a 72-month auto loan at 8% is a $17,800 car plus roughly $4,000 in interest. Shop total loan cost, not monthly payment, and watch the term length.
Adjustable-rate personal loans can reset well above the intro rate. A 3-year fixed at 9% that converts to prime + 6% jumps to around 14% when prime is 8%. On a $15,000 balance with a few years left, each 1-point rate increase adds roughly $8/month, so a 5-point jump from 9% to 14% piles on about $40-$50/month.
Frequently Asked Questions
How is a loan payment calculated?
Monthly payment is calculated using the amortization formula: P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate, and n is the total number of months.
What is the difference between a loan and a mortgage?
A mortgage is a specific type of loan secured by real estate. Personal loans are typically unsecured, have shorter terms (1-7 years), and carry higher interest rates than mortgages (15-30 years).
How does interest rate affect total cost?
Higher interest rates significantly increase total cost. For example, a $10,000 loan at 5% for 5 years costs $1,323 in interest, while the same loan at 10% costs $2,748 — more than double.
Related Reading
Learn how compound interest turns $10,000 into $76,123 over 30 years, use the Rule of 72 shortcut, and understand why the same force that builds wealth can bury you in credit card debt.
Learn how mortgage amortization works, why most of your early payments go to interest, and strategies to pay off your home loan faster with extra payments.
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