Loan Calculator
Find the monthly payment on a personal loan, auto loan or any fixed-rate installment loan. See the total interest, your payoff date and how much extra payments can save.
Assumes a fixed rate and equal monthly payments. Fees are not included unless they are part of the loan amount.
Amortization schedule, year by year
How your payments split between principal and interest each year, using the numbers above.
| Year | Principal | Interest | Balance left |
|---|
How a loan payment is calculated
Personal loans, auto loans and most other installment loans are paid back in equal monthly payments. Each payment covers the interest charged that month, and the rest reduces what you owe. Lenders find the payment with the standard amortization formula:
Because interest is charged on the remaining balance, early payments are made up of more interest and later payments of more principal. The calculator repeats this month by month, rounding interest to the cent, and adjusts the last payment so the balance ends at exactly zero.
Worked example: $20,000 at 12% for 5 years
Say you borrow $20,000 at a 12% APR and repay it over 5 years, or 60 monthly payments.
- Monthly rate: 12% ÷ 121.00%
- First month's interest: $20,000 × 0.01$200.00
- Monthly payment$444.89
- First month toward principal: $444.89 − $200.00$244.89
- Total interest over 60 months$6,693.30
Stretching the same loan to 7 years lowers the payment to $353.05 but raises total interest to $9,656.79. Shortening it to 3 years raises the payment to $664.29 and cuts interest to $3,914.31. Paying just $50 extra each month on the 5-year loan saves about $943 and finishes 7 months early.
Monthly payment at 12% APR
Monthly payments for common loan amounts and terms at a 12% APR.
| Loan amount | 2 years | 3 years | 5 years |
|---|---|---|---|
| $5,000 | $235.37 | $166.07 | $111.22 |
| $10,000 | $470.73 | $332.14 | $222.44 |
| $20,000 | $941.47 | $664.29 | $444.89 |
| $30,000 | $1,412.20 | $996.43 | $667.33 |
| $50,000 | $2,353.67 | $1,660.72 | $1,112.22 |
How the rate changes the cost of $20,000 over 5 years
| APR | Monthly payment | Total interest |
|---|---|---|
| 8% | $405.53 | $4,331.62 |
| 12% | $444.89 | $6,693.30 |
| 18% | $507.87 | $10,472.03 |
| 24% | $575.36 | $14,521.52 |
Personal loan rates depend heavily on your credit score and income, so the same loan can cost more than three times as much interest at 24% as at 8%. That is why comparing offers matters.
Tips before you borrow
- Compare APRs, not just rates. The APR includes certain fees, such as an origination fee, so it shows the fuller cost of each offer.
- Check for origination fees. Some lenders subtract a fee from the amount you receive. If you need $20,000 in hand, a 5% fee means borrowing about $21,053.
- Prequalify where you can. Many lenders show estimated rates with a soft credit check that does not affect your score.
- Pick the shortest term you can afford. You pay less interest overall, and you are debt-free sooner.
- Ask about prepayment penalties. Most personal loans have none, but confirm before you plan extra payments.
- Using it to pay off cards? See how a fixed payment compares with your current card in the Credit Card Payoff Calculator.
Frequently asked questions
How is a monthly loan payment calculated?
Fixed-rate installment loans use the amortization formula M = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the yearly rate divided by 12 and n is the number of monthly payments.
What is the monthly payment on a $20,000 loan?
At a 12% APR over 5 years, a $20,000 loan costs $444.89 a month and $6,693.30 in total interest. Over 3 years the payment is $664.29 a month, with $3,914.31 in interest.
Is a longer loan term better?
A longer term lowers the monthly payment but increases the total interest you pay. A shorter term costs more each month but less overall. Choose the shortest term whose payment fits comfortably in your budget.
Do extra payments help pay off a loan faster?
Yes. Extra amounts applied to principal reduce the balance that interest is charged on. On a $20,000 loan at 12% over 5 years, paying $50 more a month saves about $943 in interest and ends the loan 7 months early. Check first that your loan has no prepayment penalty.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. The APR also includes certain fees, such as origination fees, expressed as a yearly rate, so it is the better number for comparing loan offers.
This calculator is for educational purposes only and is not financial advice. It estimates a fixed-rate loan with equal monthly payments. Your lender's terms, fees and rounding may differ, so review your loan agreement for exact figures.