Loan Calculator
Calculate loan payments, interest costs, and repayment schedules.
Loan Details
Unsecured loan for personal expenses
Total amount you want to borrow
Typical range: 6% - 36%
Length of the loan
More frequent payments can reduce total interest
Additional amount toward principal each payment
Personal Loan Info
Payment Analysis
Monthly Payment
$501 monthly equivalent
Total Interest
Over life of loan
Total Payments
60 months
Principal vs Interest
Balance Over Time
How your remaining balance falls as you pay the loan down.
Loan Summary
Cost Analysis
Loan Tips
- • Shop around for the best interest rates
- • Consider shorter terms to save on total interest
- • Make extra payments toward principal when possible
- • Secured loans typically offer lower rates
- • Check for prepayment penalties before extra payments
How it works
A loan calculator amortizes a fixed-rate loan — it solves for the level monthly payment that clears the balance by the end of the term. Each payment covers the interest accrued on the remaining balance first, and whatever's left chips away at the principal. Because the balance shrinks over time, later payments contain more principal and less interest.
Monthly payment (amortizing loan)
M = P · r(1 + r)ⁿ / [(1 + r)ⁿ − 1]
- M
- monthly payment
- P
- principal (amount borrowed)
- r
- monthly rate (annual rate ÷ 12)
- n
- number of monthly payments (years × 12)
Worked example
- Borrow P = $25,000
- Annual rate = 7% → r = 0.07 ÷ 12 = 0.005833
- 5-year term → n = 60 payments
- (1 + r)ⁿ = 1.005833⁶⁰ ≈ 1.418
- M = 25,000 × 0.005833 × 1.418 ÷ (1.418 − 1)
Monthly payment ≈ $495 — about $4,700 in total interest over 5 years.
Good to know
- A shorter term means a higher monthly payment but far less total interest — the trade-off this calculator makes visible.
- Compare the APR, not just the interest rate: APR folds in fees, so it reflects the true cost of borrowing.
- Extra payments go entirely to principal, so they cut both the balance and the interest charged on every future payment.
Related Calculators
Frequently Asked Questions
How do I determine the best loan terms?
Compare APR (not just interest rate), total cost, monthly payment affordability, and loan terms. Lower payments may mean more total interest.
How does my credit score affect loan terms?
Higher credit scores typically qualify for lower interest rates and better terms. Improve your score before applying for the best rates.
What's the difference between secured and unsecured loans?
Secured loans (like auto loans) use collateral and offer lower rates. Unsecured loans (like personal loans) have no collateral but higher rates. Choose based on your assets and risk tolerance.
Should I choose a shorter or longer loan term?
Shorter terms mean higher monthly payments but less total interest. Longer terms have lower payments but cost more overall. Balance affordability with total cost.
When should I consider refinancing a loan?
Refinance when you can get a rate at least 1-2% lower, your credit has improved significantly, or you need to change payment terms. Factor in refinancing costs.
How much can I afford to borrow?
Keep total debt payments under 36% of gross income. For personal loans, monthly payments shouldn't exceed 10-20% of take-home pay. Always maintain an emergency fund.