Free Loan Calculator
Calculate monthly payments, total interest, and view complete payment schedules for personal loans, auto loans, and more.
Loan Details
3 years
Monthly Payment
Monthly Payment
$325.02
Total Interest
$1,701
Total Cost
$11,701
Interest %
17.0%
Loan Tips
How to Use the Loan Calculator
Enter the Loan Amount
Input the total amount you want to borrow. This is the principal of your loan - the base amount before any interest is added.
Set the Interest Rate
Enter the annual interest rate (APR) quoted by your lender. This rate determines how much you pay in interest over the life of the loan.
Choose Your Loan Term
Select or enter the loan duration in years or months. Shorter terms mean higher monthly payments but less total interest. Longer terms reduce monthly payments but increase total cost.
Review Payment Details
View your monthly payment amount, total interest paid, and total cost of the loan. Explore the amortization schedule to see how each payment splits between principal and interest.
Pro tip: Your data is processed entirely in your browser. Nothing is sent to any server, ensuring complete privacy.
Understanding Loan Payments
A loan is an agreement where a lender provides money that must be repaid with interest over a set period. Understanding how loans work helps you make informed borrowing decisions. Our calculator helps you estimate payments for any type of loan, from personal loans to auto financing.
Common Loan Types
- Personal Loans: Unsecured loans for various purposes, typically 1-7 year terms
- Auto Loans: Secured by the vehicle, typically 3-7 year terms
- Student Loans: For education expenses, often with deferred payments
- Home Equity Loans: Secured by home equity, typically 5-30 year terms
- Debt Consolidation: Combine multiple debts into one payment
Frequently Asked Questions
How is loan payment calculated?
Monthly loan payments are calculated using the formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal (loan amount), r is the monthly interest rate, and n is the number of payments. This ensures each payment covers both interest and principal.
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 charges like origination fees, making it a more complete picture of borrowing costs. Always compare APRs when shopping for loans.
Should I choose a longer or shorter loan term?
Shorter loan terms have higher monthly payments but lower total interest. Longer terms have lower payments but more total interest paid. Choose based on your budget and how quickly you want to be debt-free.
What factors affect my loan interest rate?
Interest rates depend on your credit score, loan amount, loan term, type of loan, income, debt-to-income ratio, and current market rates. Higher credit scores and shorter terms typically get better rates.
Can I pay off a loan early?
Most loans allow early payoff, but some have prepayment penalties. Check your loan agreement. Paying extra toward principal can save significant interest and shorten your loan term.
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