Loan Calculator

How this loan calculator works

Personal loans, auto loans, and many installment products use the same math as a fixed-rate mortgage: a constant monthly payment that clears principal and interest by the end of the term. Enter the amount financed, the APR as an annual percent, and the length of the loan in years. The tool returns an estimated monthly payment and total interest over the life of the loan.

When to use it

Use this calculator when you have (or expect) a fixed APR and a set number of monthly payments — for example, comparing a 4-year versus 5-year auto loan, or seeing how a lower rate changes the monthly cost of a personal loan. It is less suitable for credit cards or revolving lines where the balance changes every month; use the debt payoff calculator for those.

Formula

Monthly payment follows standard amortization: with principal P, monthly rate r, and n months, payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]. Total interest is (payment × n) − P.

Worked example

A $15,000 loan at 9% APR for 4 years has 48 payments. The estimated monthly payment is roughly $373, and total interest over the term is a few thousand dollars depending on rounding. Lowering the rate or shortening the term reduces total interest; lengthening the term usually lowers the monthly payment but raises interest paid.

How to use it

1. Enter the principal (amount you will borrow or still owe).
2. Enter the annual interest rate as a percent.
3. Enter the term in years (decimals are allowed if your loan is quoted that way).
4. Compare the monthly payment and total interest across a few realistic rate and term combinations.

Frequently asked questions

Is APR the same as the interest rate I enter?

Enter the annual rate your lender quotes for amortization. Advertised APR can include fees; this tool models interest on principal only.

Can I model biweekly payments?

Not directly. Biweekly schedules make more payments per year; ask your lender or use a dedicated amortization schedule for that case.

Limitations

Fees, prepayment penalties, and variable rates are not modeled. Lenders may round payments differently. Results are estimates only and are not financial advice.

Results are estimates only and are not financial advice.