Loan Calculator
Work out the monthly payment, total interest, and full amortization schedule for any personal or auto loan. See how much an extra monthly payment saves you in interest and time.
| Year | Paid | Principal | Interest | Balance |
|---|---|---|---|---|
| Year 1 | $7,128 | $5,193 | $1,935 | $24,807 |
| Year 2 | $7,128 | $5,568 | $1,560 | $19,239 |
| Year 3 | $7,128 | $5,971 | $1,158 | $13,268 |
| Year 4 | $7,128 | $6,403 | $726 | $6,865 |
| Year 5 | $7,128 | $6,865 | $263 | $0 |
Estimates only. Your lender's figures may differ slightly because of fees rolled into APR, rounding, the first payment date, or daily-interest accrual. Confirm the exact numbers with your lender or a financial advisor before signing.
TL;DR
Enter your loan amount, interest rate, and term above and the calculator returns the fixed monthly payment, the total interest you'll pay, and a year-by-year amortization schedule. For an auto loan, switch to the Auto Loan tab and the tool subtracts your down payment from the vehicle price. Add an optional extra monthly payment to see exactly how much interest and time you save. The math uses the standard amortizing-loan formula every bank uses — figures match your lender within rounding.
Monthly payment per $1,000 borrowed
This is the fastest way to estimate any loan in your head. Find your rate and term, then multiply by how many thousands you're borrowing. Example: a $25,000 loan at 7% over 60 months is 25 × $19.80 = about $495/month. Figures are exact to the cent for a standard amortizing loan.
| Rate | 24 mo | 36 mo | 48 mo | 60 mo | 72 mo |
|---|---|---|---|---|---|
| 3% | $42.98 | $29.08 | $22.13 | $17.97 | $15.19 |
| 4% | $43.42 | $29.52 | $22.58 | $18.42 | $15.65 |
| 5% | $43.87 | $29.97 | $23.03 | $18.87 | $16.10 |
| 6% | $44.32 | $30.42 | $23.49 | $19.33 | $16.57 |
| 7% | $44.77 | $30.88 | $23.95 | $19.80 | $17.05 |
| 8% | $45.23 | $31.34 | $24.41 | $20.28 | $17.53 |
| 9% | $45.68 | $31.80 | $24.89 | $20.76 | $18.03 |
| 10% | $46.14 | $32.27 | $25.36 | $21.25 | $18.53 |
Values are the monthly payment to fully repay $1,000 over the given term at the given annual rate, calculated with the standard amortization formula below.
Why a longer term costs you more: $30,000 at 7%
The longer you take to repay, the lower the monthly payment — but the more total interest you hand the lender. Here is the same $30,000 loan at 7% APR across five common terms, so the trade-off is impossible to miss.
| Term | Monthly payment | Total interest | Total cost |
|---|---|---|---|
| 24 months (2 yr) | $1,343.18 | $2,236 | $32,236 |
| 36 months (3 yr) | $926.31 | $3,347 | $33,347 |
| 48 months (4 yr) | $718.39 | $4,483 | $34,483 |
| 60 months (5 yr) | $594.04 | $5,642 | $35,642 |
| 72 months (6 yr) | $511.47 | $6,826 | $36,826 |
Stretching the same $30,000 from 24 to 72 months drops the payment by about $832/month but triples the interest — from $2,236 to $6,826. Lenders advertise the low payment; the calculator above shows you the true cost.
The amortization formula, in plain terms
Every fixed-rate personal and auto loan uses the same monthly-payment formula:
- M = the fixed monthly payment.
- P = the principal (the amount you borrow).
- r = the monthly interest rate = annual rate ÷ 12 ÷ 100. A 6% APR becomes 0.005 per month.
- n = the total number of monthly payments (years × 12).
- If the rate is 0% (a true interest-free deal), the formula collapses to M = P ÷ n.
Each month, interest is charged on the remaining balance, and whatever is left of your payment chips away at the principal. Early on, most of the payment is interest; as the balance shrinks, more of each payment goes to principal. Toggle the schedule above to Monthly view to watch that crossover happen.
Frequently asked questions
What is the monthly payment on a $30,000 loan?
It depends on the rate and term. At 7% APR, a $30,000 loan is about $926/month over 36 months, $594/month over 60 months, or $511/month over 72 months. The longer term has a lower payment but costs more in total interest — the 72-month plan pays roughly $3,500 more interest than the 36-month plan. Enter your exact rate and term in the calculator above for the precise figure.
Does paying extra each month really reduce the interest?
Yes, significantly — because interest is charged on the remaining balance. Every extra dollar goes straight to principal, shrinking the balance that future interest is calculated on. On that same $30,000 loan at 7% over 60 months, paying just $100 extra per month pays it off 10 months early and saves about $972 in interest. Add an extra payment in the calculator to see your own numbers. (Confirm your lender has no prepayment penalty first.)
Should I choose a shorter or longer loan term?
A shorter term means a higher monthly payment but far less total interest and faster ownership. A longer term lowers the monthly payment but you pay more interest overall and stay in debt longer — risky on a car, which depreciates faster than the loan shrinks (going "upside down"). A common rule of thumb is to keep auto loans to 60 months or less. Pick the shortest term whose monthly payment fits your budget comfortably.
What is the difference between APR and the interest rate?
The interest rate is the cost of borrowing the principal alone. The APR (Annual Percentage Rate) bundles in mandatory lender fees — origination, processing, and similar — so it is usually a little higher and is the truer measure for comparing loan offers. This calculator treats the rate you enter as the periodic rate; if you only have the APR with no extra fees, the two are effectively the same. When comparing lenders, always compare APR to APR.
What does "amortization" actually mean?
Amortization is the process of paying off a loan with equal payments over time, where each payment is split between interest and principal. The split changes every month: at the start, most of the payment is interest because the balance is large; near the end, almost all of it is principal. An amortization schedule (the table above) lists that split for every single payment until the balance hits zero.
How do I calculate an auto loan after a down payment and trade-in?
You only finance what is left after your cash down payment and any trade-in credit. Switch to the Auto Loan tab above, enter the vehicle price and your down payment, and the tool finances the difference. If you have a trade-in, add its value to your down payment figure. Note that taxes and dealer fees are often rolled into the financed amount, which can raise it — confirm the final out-the-door price with the dealer.