Loan Calculator
Calculate your monthly payment, total interest, and payoff schedule for any personal or installment loan. Add extra payments to see how much interest you can save.
| Period | Payment | Principal | Interest | Balance |
|---|
How to Use the Loan Calculator
This loan calculator helps you estimate the payment on any personal, installment, or fixed-rate loan. Enter your loan amount, annual interest rate, and repayment term to instantly see your payment and total cost of borrowing. Use the extra payment field to see how much interest you save by paying more each period.
Bi-weekly vs Monthly Payments
Choosing bi-weekly payments instead of monthly means you make 26 half-payments per year — equivalent to 13 full monthly payments instead of 12. This one extra payment per year can shorten a 3-year loan by about 2 months and save meaningful interest over the life of the loan.
The Loan Payment Formula
Monthly payments use the amortization formula: M = P × r(1+r)ⁿ / [(1+r)ⁿ−1], where P = principal, r = monthly interest rate (APR ÷ 12), and n = number of payments. For bi-weekly, r = APR ÷ 26.
How Loan Term Affects Total Cost
The longer your loan term, the lower your monthly payment — but the more total interest you pay. On a $15,000 loan at 10.5%: a 36-month term costs about $2,530 total in interest; a 60-month term costs about $4,200. Choosing the longer term saves ~$163/month but costs ~$1,670 more overall.
Tips to Get the Best Loan Rate
- Check your credit score before applying — rates are tier-based on credit
- Compare APRs from at least 3 lenders (banks, credit unions, online lenders)
- Credit unions often offer rates 1–3% lower than banks
- Consider a shorter term if you can afford the higher payment — you'll save significantly on interest
- Avoid payday loans and loans with prepayment penalties
Common Loan Types and Current Rates (2025)
| Loan Type | Typical APR Range | Common Terms |
|---|---|---|
| Personal loan (excellent credit) | 6–10% | 24–60 months |
| Personal loan (good credit) | 10–20% | 24–60 months |
| Auto loan (new car) | 5–9% | 36–72 months |
| Auto loan (used car) | 7–16% | 24–60 months |
| Home improvement loan | 7–15% | 24–84 months |
| Medical financing | 6–22% | 12–60 months |
The True Cost of Borrowing: Term Comparison
On a $15,000 personal loan at 12% APR, here's how your term choice changes the real cost:
| Term | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|
| 24 months | $706 | $944 | $15,944 |
| 36 months | $498 | $1,428 | $16,428 |
| 48 months | $395 | $1,960 | $16,960 |
| 60 months | $333 | $2,980 | $17,980 |
The 60-month option saves $373/month vs. 24 months — but costs $2,036 more in total interest. If you can afford the higher payment, shorter is almost always cheaper overall. Use this calculator to run both scenarios before deciding.
How to Compare Loan Offers the Right Way
Never compare loans by monthly payment alone — a lower payment usually just means a longer term and more interest paid. Always compare: (1) APR (the all-in annual cost including origination fees, not just the base interest rate), (2) total cost of borrowing (monthly payment × number of payments minus principal), and (3) prepayment terms (does the lender charge a penalty for paying early?). A loan with a slightly higher monthly payment and no prepayment penalty is often the smarter choice if you plan to pay it down faster.
Your Debt-to-Income Ratio (DTI)
Before taking any loan, calculate your DTI: total monthly debt payments ÷ gross monthly income. Most lenders want DTI below 36% for personal loans; some allow up to 43–45%. If you earn $6,000/month and already pay $800/month for a car loan, your DTI is 13%. Adding a $450 loan payment brings it to 21% — fine for most lenders. Plug your loan payment from this calculator into your DTI before applying to know where you stand.
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