Loan Calculator
Calculate loan payment, total interest, and see amortization schedule. Free loan calculator supports extra payments.
The Loan Calculator helps you estimate monthly payments, total interest, and the full amortization schedule for any fixed-rate loan. Whether you are comparing personal loan offers, planning a debt consolidation strategy, or simply curious how extra payments shorten your payoff timeline, this tool gives you the numbers you need to make confident borrowing decisions.
Examples
$25,000 Personal Loan at 9% for 5 Years
Paying Off a Loan Early with Extra Payments
$10,000 Debt Consolidation Loan at 6% for 3 Years
36-Month vs 60-Month Loan
| Feature | 36-Month Loan | 60-Month Loan |
|---|---|---|
| Monthly Payment | Higher | Lower |
| Total Interest Paid | Significantly less | Significantly more |
| Payoff Speed | 3 years | 5 years |
| Budget Flexibility | Less monthly flexibility | More monthly flexibility |
| Best For | Borrowers who can afford higher payments and want to minimize cost | Borrowers who need lower monthly payments and are willing to pay more overall |
Frequently Asked Questions
How is interest calculated?
Do extra payments reduce interest?
Can I print the amortization schedule?
What is the difference between APR and interest rate?
Should I choose a shorter or longer loan term?
What happens if I miss a payment?
Key Terms
- Principal
- The original amount of money borrowed, excluding interest and fees. Your monthly payment is split between reducing the principal and paying interest.
- APR (Annual Percentage Rate)
- The yearly cost of borrowing expressed as a percentage. APR includes the interest rate plus any mandatory fees, making it a more accurate measure of loan cost than the interest rate alone.
- Amortization
- The process of paying off a loan through regular scheduled payments over time. Early payments are mostly interest; later payments are mostly principal.
- Prepayment Penalty
- A fee some lenders charge if you pay off your loan before the scheduled end date. Not all loans have this, so check your loan agreement before making extra payments.
- Term
- The length of time you have to repay the loan in full. Common personal loan terms range from 12 to 84 months.
References
- What Is a Personal Loan? — Consumer Financial Protection Bureau (CFPB)
- Understanding Loan Costs — Federal Reserve Board
- Borrowing Basics: How Loans Work — Investopedia
Quick Tips
- •Even small extra monthly payments can save thousands in interest and shave years off your loan. Try adding just $50 or $100 extra per month to see the impact.
- •Compare the total interest paid across different loan terms (e.g., 36 months vs. 60 months) before committing to a longer repayment period.
- •Check your credit score before applying; a difference of even 1-2 percentage points in APR can significantly change total costs.
- •Consider making one extra payment per year (e.g., from a tax refund or bonus) to accelerate payoff without straining your monthly budget.
- •Always read the fine print for prepayment penalties; some lenders charge fees if you pay off the loan ahead of schedule.
The Loan Calculator helps you estimate monthly payments, total interest, and the full amortization schedule for any fixed-rate loan. Whether you are comparing personal loan offers, planning a debt consolidation strategy, or simply curious how extra payments shorten your payoff timeline, this tool gives you the numbers you need to make confident borrowing decisions.
How to Use This Calculator
Enter the loan amount, annual interest rate, and loan term. Turn on Extra Payments to model additional principal payments and see how much sooner you can pay off the loan and how much interest you save. Click Calculate to see your monthly payment and the full amortization schedule.
Understanding the Formula
M = P * r * (1+r)^n / ((1+r)^n - 1)
Examples
$25,000 Personal Loan at 9% for 5 Years
You borrow $25,000 at 9% APR for 60 months. Your fixed monthly payment is $519. Over the life of the loan, you pay $6,140 in total interest, bringing the total repayment to $31,140.
Paying Off a Loan Early with Extra Payments
You have a $15,000 loan at 7.5% APR for 48 months (monthly payment $363). By adding $100/month in extra principal payments, you pay off the loan in about 34 months instead of 48, saving approximately $920 in interest.
$10,000 Debt Consolidation Loan at 6% for 3 Years
You consolidate $10,000 of high-interest credit card debt into a personal loan at 6% APR for 36 months. Your monthly payment is $304, and you pay $944 in total interest -- far less than the $2,500+ you would have paid at typical credit card rates of 20-25%.
Frequently Asked Questions
How is interest calculated?
Interest is calculated monthly based on the remaining principal balance. Each month, the lender multiplies your outstanding balance by the monthly interest rate (annual rate divided by 12) to determine that month's interest charge.
Do extra payments reduce interest?
Yes, paying extra reduces the principal faster, which lowers the total interest paid significantly over the life of the loan.
Can I print the amortization schedule?
Yes, use the Print button above the table to print or save the schedule as a PDF.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus other fees and costs, giving you a more complete picture of what the loan actually costs per year.
Should I choose a shorter or longer loan term?
A shorter term means higher monthly payments but significantly less total interest. A longer term lowers your monthly payment but increases the total amount you pay over the life of the loan. Use this calculator to compare both scenarios side by side.
What happens if I miss a payment?
Missing a payment can trigger late fees, increase your interest costs, and negatively affect your credit score. Most lenders offer a grace period of 10-15 days, but it is best to set up automatic payments to avoid missed due dates.
Assumptions & Limitations
- Assumes a fixed interest rate for the entire loan term.
- Does not account for fees, origination charges, or closing costs that may increase the effective cost of borrowing.
- Extra payments are applied directly to principal with no prepayment penalties.
- Monthly compounding is used; actual lender calculations may differ slightly depending on day-count conventions.
- The calculator does not factor in taxes or insurance that may be bundled into your actual payment.
36-Month vs 60-Month Loan
| Feature | 36-Month Loan | 60-Month Loan |
|---|---|---|
| Monthly Payment | Higher | Lower |
| Total Interest Paid | Significantly less | Significantly more |
| Payoff Speed | 3 years | 5 years |
| Budget Flexibility | Less monthly flexibility | More monthly flexibility |
| Best For | Borrowers who can afford higher payments and want to minimize cost | Borrowers who need lower monthly payments and are willing to pay more overall |
Key Terms
- Principal
- The original amount of money borrowed, excluding interest and fees. Your monthly payment is split between reducing the principal and paying interest.
- APR (Annual Percentage Rate)
- The yearly cost of borrowing expressed as a percentage. APR includes the interest rate plus any mandatory fees, making it a more accurate measure of loan cost than the interest rate alone.
- Amortization
- The process of paying off a loan through regular scheduled payments over time. Early payments are mostly interest; later payments are mostly principal.
- Prepayment Penalty
- A fee some lenders charge if you pay off your loan before the scheduled end date. Not all loans have this, so check your loan agreement before making extra payments.
- Term
- The length of time you have to repay the loan in full. Common personal loan terms range from 12 to 84 months.
References
- What Is a Personal Loan? — Consumer Financial Protection Bureau (CFPB)
- Understanding Loan Costs — Federal Reserve Board
- Borrowing Basics: How Loans Work — Investopedia