Loan Payment Calculator
Calculate your monthly payment
About the Calculator
Loans are easy to accept and hard to undo — especially when the monthly payment looks manageable but the total cost is enormous. A $25,000 car loan at 7% for 60 months has a monthly payment of $495. It also has a total cost of $29,700 — nearly $5,000 paid purely in interest, for the privilege of not waiting. This calculator shows you the monthly payment, total interest, and full payoff cost for any loan, so the real price of borrowing is visible before you sign anything. Use it to compare rates, weigh a shorter term against a longer one, or decide whether refinancing your existing loan makes sense. The goal is simple: when the numbers are clear, the decision gets easier.
How to Calculate Manually
- 1Identify the loan principal (P) - the amount you're borrowing.
- 2Convert the annual interest rate to a monthly rate by dividing by 12.
- 3Convert the rate from percentage to decimal (divide by 100).
- 4Determine the total number of payments (n) by multiplying years by 12.
- 5Apply the formula to calculate the monthly payment (M).
Monthly Payment
$1,580.17
Total Payment
$568,861.22
Total Interest
$318,861.22
Principal remaining
Loan balance after each monthly payment through the full term.
Principal vs. interest each month
How each payment is split between principal (reducing the balance) and interest.
Each bar sums several months so long loans stay fast to render; totals match the full schedule.
Loan Payment Comparison by Rate and Loan Term
Same loan amount across small changes to rate and term. Rates step by 0.25–0.5 points; terms step by ±1–2 years, or use 10–30 year rungs when your term is 15 or 30 years. Click a column heading to sort.
| 6.00% | 10 yr | $2,775.51 | $333,062 | $83,062 |
| 6.00% | 15 yr | $2,109.64 | $379,736 | $129,736 |
| 6.00% | 20 yr | $1,791.08 | $429,859 | $179,859 |
| 6.00% | 25 yr | $1,610.75 | $483,226 | $233,226 |
| 6.00% | 30 yr | $1,498.88 | $539,595 | $289,595 |
| 6.25% | 10 yr | $2,807.00 | $336,840 | $86,840 |
| 6.25% | 15 yr | $2,143.56 | $385,840 | $135,840 |
| 6.25% | 20 yr | $1,827.32 | $438,557 | $188,557 |
| 6.25% | 25 yr | $1,649.17 | $494,752 | $244,752 |
| 6.25% | 30 yr | $1,539.29 | $554,145 | $304,145 |
| 6.50% | 10 yr | $2,838.70 | $340,644 | $90,644 |
| 6.50% | 15 yr | $2,177.77 | $391,998 | $141,998 |
| 6.50% | 20 yr | $1,863.93 | $447,344 | $197,344 |
| 6.50% | 25 yr | $1,688.02 | $506,405 | $256,405 |
| 6.50%Your inputs | 30 yr | $1,580.17 | $568,861 | $318,861 |
| 6.75% | 10 yr | $2,870.60 | $344,472 | $94,472 |
| 6.75% | 15 yr | $2,212.27 | $398,209 | $148,209 |
| 6.75% | 20 yr | $1,900.91 | $456,218 | $206,218 |
| 6.75% | 25 yr | $1,727.28 | $518,184 | $268,184 |
| 6.75% | 30 yr | $1,621.50 | $583,738 | $333,738 |
| 7.00% | 10 yr | $2,902.71 | $348,325 | $98,325 |
| 7.00% | 15 yr | $2,247.07 | $404,473 | $154,473 |
| 7.00% | 20 yr | $1,938.25 | $465,179 | $215,179 |
| 7.00% | 25 yr | $1,766.95 | $530,084 | $280,084 |
| 7.00% | 30 yr | $1,663.26 | $598,772 | $348,772 |
The Formula
How loan type affects your rate and term
This calculator works for any amortizing loan — but rates and typical terms vary significantly depending on what you're borrowing for. Here's what to expect going into 2026:
Personal loans — Unsecured, meaning no collateral is required. Rates typically range from 8–25% depending on credit score, with terms of 2–7 years. Higher rates reflect the lender's increased risk. Used for debt consolidation, home improvements, medical bills, or large purchases.
Auto loans — Secured by the vehicle. Rates for new cars with good credit run approximately 5–8%; used cars typically run 7–12%. Terms range from 36–84 months. Longer terms lower the monthly payment but increase the risk of going "underwater" — owing more than the car is worth.
Student loans — Federal student loan rates for 2025–2026 are 6.53% (undergraduate) and 8.08% (graduate). Private student loans vary by lender and credit profile. Terms typically run 10–25 years for federal loans.
Mortgages — Secured by the property. The 30-year fixed rate currently sits around 6.3–6.5% (April 2026). Terms are typically 15 or 30 years. The total interest cost over a 30-year mortgage is often larger than the original loan amount itself.
Credit cards — Technically a revolving credit product rather than an installment loan, but the same amortization math applies to any fixed monthly payment. Average APR is currently around 21–22%, which is why minimum-payment-only strategies lead to years of repayment and enormous total costs.
Why so much of your early payments are interest
On any standard amortizing loan, your monthly payment is fixed — but the split between principal and interest shifts every single month. In the early payments, most of your money goes toward interest. In the final payments, almost all of it goes toward principal. This is called front-loaded interest, and it's the most counterintuitive thing about how loans work.
Here's why: interest is calculated each month on your remaining balance. When the balance is large (early in the loan), the interest charge is large. As the balance shrinks, so does the interest portion — and more of your fixed payment goes toward principal.
On a $20,000 personal loan at 8% for 5 years (monthly payment: $405): your very first payment is split roughly $133 interest / $272 principal. By month 55, it's about $8 interest / $397 principal. The total loan costs $24,322 — meaning $4,322 went entirely to interest. None of that changes the amount you borrowed or own; it's purely the cost of access to the money.
This is also why making extra payments early in a loan saves dramatically more than the same extra payment made near the end — and why refinancing in the first half of a loan term makes far more mathematical sense than refinancing in the final years.
Examples
Example 1: The real cost of a car loan
A buyer finances $30,000 for a new car at 7% for 60 months. Monthly payment: $594. That feels affordable — but the total repayment is $35,640, meaning $5,640 was paid purely in interest. The same buyer stretching to a 72-month loan to lower the payment to $513/month ends up paying $36,936 total — $1,296 more in interest for the convenience of a lower monthly payment, while remaining exposed to depreciation for an extra year. The 60-month loan is significantly the better deal, and the monthly difference is only $81.
Example 2: The debt consolidation calculation
Someone carries $18,000 across three credit cards averaging 22% APR, paying $540/month. A personal loan at 11% for 36 months has a monthly payment of $589 — slightly higher — but total repayment is $21,204. Continuing minimum payments on the credit cards at 22% would cost approximately $24,800 over the same period and take longer. The personal loan saves roughly $3,600 and gets the debt eliminated on a fixed schedule. The math strongly favors consolidation — provided the credit cards aren't recharged after being paid off.
Example 3: Shorter term vs. longer term, same loan
A $15,000 personal loan at 9%: over 36 months the payment is $477/month, total cost $17,172. Over 60 months the payment drops to $311/month — but total cost rises to $18,660. The 36-month option saves $1,488 in interest and has the debt gone two years sooner. The 60-month option costs $166 less per month. If cash flow is tight, the lower payment has real value. If it isn't, paying an extra $166/month to save $1,488 and two years of obligation is almost always worth it.
FAQ
What's a good interest rate for a personal loan in 2026?
For borrowers with excellent credit (760+), personal loan rates from reputable lenders currently run 7–12%. Good credit (700–759) typically yields 12–17%. Fair credit (640–699) runs 17–24%. Anything above 25% should be a signal to either work on your credit profile before borrowing or explore secured alternatives. Always get quotes from at least three lenders — online lenders, credit unions, and your primary bank — before accepting an offer.
What's the difference between interest rate and APR?
The interest rate is the base cost of borrowing expressed as a percentage of the principal. APR (Annual Percentage Rate) includes the interest rate plus any fees — origination fees, closing costs, broker fees — expressed as a single annual rate. APR is always equal to or higher than the interest rate. For comparing loans from different lenders, always use APR, not the interest rate. A loan advertised at 9% interest with a 3% origination fee has a meaningfully higher APR than a 9.5% loan with no fees, especially on a short-term loan.
Should I choose a shorter or longer loan term?
Shorter terms have higher monthly payments but lower total interest and get the debt off your books faster. Longer terms have lower monthly payments but higher total interest and keep you financially exposed to the debt longer. The right answer is the shortest term whose monthly payment fits your budget without leaving you cash-poor. Running both scenarios in this calculator and comparing total interest is the fastest way to make the decision.
Does paying off a loan early save interest?
Yes — because interest accrues on the remaining balance, any principal you pay down early reduces all future interest charges. On most consumer loans (personal, auto, student), there are no prepayment penalties and early payoff is always financially beneficial. Check your loan agreement to confirm — prepayment penalties are rare on modern consumer loans but do exist on some older or non-standard products.
How does my credit score affect my loan payment?
Directly and significantly. On a $20,000 loan over 5 years, the difference between a 680-credit score rate (around 15%) and a 760+ rate (around 9%) is approximately $67/month — and about $4,000 in total interest over the life of the loan. Credit score improvement is one of the highest-return financial activities available before making any significant borrowing decision.
When does refinancing a loan make sense?
Refinancing makes mathematical sense when: (1) you can reduce your rate by at least 0.75–1%, (2) you're in the first half of the loan term (so most of the interest savings are still ahead of you), and (3) any origination fees on the new loan are recovered within 12–18 months of lower payments. Avoid refinancing a loan you're close to paying off — you'd reset the amortization clock and pay more in interest over the extended new term.
Tips & Strategies
Always compare APR, not just interest rate. APR includes origination fees and other loan costs rolled into an annualized rate. Two loans with the same interest rate but different fees will have different APRs — and the APR is the true apples-to-apples comparison number.
Credit score has an outsized impact on total loan cost. The difference between a 680 and a 760 credit score on a $20,000 personal loan can be 4–6 percentage points of interest — translating to $2,000–$4,000 in additional total cost over the loan life. If your score is borderline, a few months of focused improvement before applying is often worth the wait.
Shorter terms always win on total cost. The only good reason to choose a longer loan term is genuine cash flow need. If you can afford the higher monthly payment on a shorter term, the interest savings are almost always worth it.
Refinancing makes sense when the math clears a specific bar. The general rule: refinancing is worth doing if you can reduce the rate by 0.75–1% or more, you haven't yet paid off more than 50% of the loan, and the origination fees on the new loan are recovered within 12–18 months of lower payments.
Cross-check when the decision matters. Run a second scenario with rounded inputs or a different path to the same quantity so you do not rely on a single fragile chain of arithmetic.
Things Worth Knowing
- •The Short vs Long Trade-off: Cutting a loan from 60 months to 36 months can save 40-50% of total interest paid, but increases monthly payments by 30-40%. A $25,000 loan at 7% costs $495/month for 60 months vs. $772/month for 36 months.
- •The Extra Payment Magic: Making just one extra payment per year on a 5-year auto loan can cut 6-8 months off the term and save hundreds in interest. It's the equivalent of a 13th monthly payment applied to principal.
- •The Rate-Breaking Points: Each 1% increase in interest rate on a $20,000 loan adds approximately $550-650 in total interest over a typical 60-month term, making credit score improvement worth thousands.
- •The $500/Month Trap: At current average auto loan rates (7-8%), $500/month can finance approximately $25,000-27,000 over 60 months, but most new cars now average $47,000+, pushing buyers into 72-84 month loans.
- •Front-Loaded Interest: On a typical amortizing loan, approximately 70-80% of your first year's payments go toward interest, not principal. A $20,000 loan at 7% sees just $150-200/month actually reducing the balance early on.
- •The Refinancing Sweet Spot: Refinancing a loan makes sense if you can reduce the rate by 0.75-1% or more and haven't paid off more than 50% of the loan, but beware of extending the term and paying more total interest.
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