A loan calculator reveals the true cost of borrowing before you sign. Enter the loan amount, annual percentage rate (APR) and term to get the fixed monthly payment, the total interest you will pay, and the total cost of the loan. Works for auto loans, personal loans, student loans and any fixed-rate installment loan.
Loan details
Years and months stay in sync: editing one updates the other.
Cost of the loan
How is a monthly loan payment calculated?
With the amortization formula M = P x r(1+r)^n / ((1+r)^n - 1): loan amount times the monthly rate factor. A $25,000 loan at 7.5% APR for 60 months costs about $501 per month.
Each payment covers that month interest first; the rest reduces principal. That is why early payments barely dent the balance.
What is the difference between APR and interest rate?
APR (annual percentage rate) includes the interest rate plus most lender fees, expressed yearly: it is the truer cost of borrowing. The interest rate alone ignores fees.
When comparing loans, compare APRs, not headline rates. This calculator uses the APR you enter.
Should I choose a shorter loan term?
Shorter terms mean higher monthly payments but much less total interest. Cutting a 72-month car loan to 48 months can save thousands in interest.
Balance the saving against your monthly budget: the payment must stay affordable even in tight months.
Frequently asked questions
What kinds of loans does this work for?
Any fixed-rate installment loan: auto loans, personal loans, student loans. It does not model variable rates, balloon payments or interest-only periods.
Does it include fees or taxes?
No. Origination fees, sales tax on a car, and insurance are not included. Add them to the loan amount yourself for a fuller picture.
What happens with a 0% APR?
The payment is simply the loan amount divided by the number of months, with zero total interest. Common for promotional auto financing.
How do extra payments affect the loan?
Extra principal payments shorten the term and cut total interest. This calculator shows the scheduled minimums; extra payments are not modeled.
Is my loan data uploaded anywhere?
No. All calculations happen in your browser with JavaScript. Nothing leaves your device.