How to use the loan calculator
Enter the amount you're borrowing, the annual interest rate (APR), and how long you'll take to repay it. The calculator returns your fixed monthly payment, the total interest you'll pay over the life of the loan, and a year-by-year breakdown of how the balance falls.
The formula
Payments use the amortization formula M = P · r · (1+r)ⁿ / ((1+r)ⁿ − 1) — the same math banks use — where P is the amount borrowed, r is the monthly rate, and n is the number of months.
Shortening the term raises the monthly payment but sharply cuts total interest. Even a small rate difference can change the total cost of a loan by thousands of dollars, so it pays to compare offers.
Frequently asked questions
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR (annual percentage rate) also includes certain fees, so it's usually slightly higher and is a better figure for comparing loans. Enter the APR here for the most realistic result.
How can I pay less interest?
Choose a shorter term, make extra payments toward principal, or secure a lower rate. Because interest is charged on the remaining balance, paying down principal early reduces every future interest charge.
Does this work for student or business loans?
Yes — any fixed-rate installment loan with a set term works. Variable-rate loans will differ over time as the rate changes.