Loan Calculator
Clarify your debt and visualize your path to a zero balance.
Loan Calculator
Whether it's a personal loan, car loan, student loan, or any other installment debt, this loan calculator gives you the monthly payment and total interest cost in seconds. Know the real cost before you borrow.
How to Use This Calculator
- Enter the loan amount (principal).
- Enter the annual interest rate (APR).
- Enter the loan term in months or years.
- Click Calculate to see monthly payment, total payment, and total interest.
Loan Payment Formula
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ – 1]
P = Principal | r = Monthly rate (annual ÷ 12) | n = Total months
Example Calculation
Loan: $15,000 | Rate: 9.5% | Term: 36 months
- Monthly payment: ≈ $480
- Total paid: $17,280
- Total interest: $2,280
Impact of Loan Term on Total Cost
- 36 months: $480/month → $2,280 total interest
- 48 months: $375/month → $3,000 total interest
- 60 months: $314/month → $3,840 total interest
Shorter term = higher payment but significantly less interest paid.
Common Mistakes to Avoid
- Choosing loan by monthly payment alone — Always look at total interest paid over the full term.
- Not shopping for rates — Even a 2% rate difference on a $15,000 loan saves hundreds. Compare at least 3–5 lenders.
- Taking a loan for a depreciating asset at a high rate — If the interest rate exceeds the asset's utility, consider whether the purchase is wise.
Frequently Asked Questions
What is a good personal loan rate?
With excellent credit (750+), personal loan rates typically range from 6%–12%. Average credit sees 12%–20%. Rates above 25% are predatory — explore alternatives (credit union, secured loan, family loan).
Can I pay off a loan early?
Most installment loans allow early payoff. Check for prepayment penalties first. Paying extra monthly reduces principal faster and cuts total interest. Use our Amortization Calculator to see the impact.
What is the difference between a secured and unsecured loan?
Secured loans use collateral (home, car) — lower rates, but you risk losing the asset if you default. Unsecured loans have no collateral but higher rates to compensate the lender's risk.
Conclusion
Always calculate total interest — not just the monthly payment — before agreeing to any loan. A small rate difference or shorter term can save you thousands. Compare your options here before you sign.
Related: Personal Loan Calculator | Amortization Calculator | Interest Rate Calculator | Payment Calculator
Expert Strategy
Always aim for the shortest term you can afford. While a 7-year car loan has lower payments, the total interest cost is often double that of a 4-year loan!
