Loan Calculator
Monthly payment and total interest for any fixed-rate loan: personal, student, car or otherwise.
How loan payments work
A fixed-rate loan is repaid in equal monthly installments. Each installment covers that month's interest on the remaining balance, and the rest reduces the balance. The payment is set with the amortization formula so the balance hits exactly zero on the final payment:
M = P × r(1+r)n / ((1+r)n - 1)
with monthly rate r = APR ÷ 12 and n total payments.
APR vs. interest rate
The advertised interest rate covers only interest. APR (annual percentage rate) also folds in mandatory fees, so it is the better number for comparing offers. This calculator treats your input as the yearly rate applied monthly. Enter the APR for a more realistic total cost.
Tip: the term drives the total cost
Stretching a $20,000 loan at 8% from 3 years to 7 years drops the payment from about $627 to $312, but total interest jumps from roughly $2,562 to $6,186. If the budget allows, a shorter term is almost always cheaper overall.