Find your monthly payment, total interest, and payoff for any fixed-rate loan
In plain terms: it shows the true monthly payment and the total interest for any fixed-rate loan — personal, auto, student, or home-improvement. Enter how much you want to borrow, the annual interest rate a lender quoted, and the term in years or months, then read the single monthly figure you would actually pay and see how much the loan costs on top of what you borrow. Everything runs in your browser — nothing you type is uploaded or stored.
Each row shows what you pay, how much of it reduces the loan, how much is interest, and what you still owe afterward.
Loan calculator gives you the monthly payment, total interest, and payoff timeline for any fixed-rate loan — personal, auto, student, or home improvement — in a single step. Enter the amount you plan to borrow, the annual interest rate your lender quoted, and the length of the loan in years or months, then press Calculate Payment. In an instant you will see the fixed monthly payment, how much of your money goes to interest over the life of the loan, the grand total you will repay, and exactly when the balance reaches zero.
Every calculation runs entirely in your browser. Nothing you type is sent to a server, stored, or shared, so you can model as many what-if scenarios as you like with complete privacy. This makes it easy to compare offers from different lenders, test the impact of a bigger down payment, or see how a shorter term changes your budget before you ever fill out an application.
A fixed-rate loan is repaid through a process called amortization, where you make the same payment every month until the balance is gone. Each payment covers two things: the interest that has accrued on the current balance, and a portion of the principal that reduces what you still owe. Because the balance is largest at the beginning, early payments are mostly interest and only a small slice goes to principal. As the balance falls, the interest portion shrinks and more of each payment chips away at the principal.
The monthly payment itself comes from a single formula. If P is the loan amount, r is the monthly interest rate (the annual rate divided by 12 and by 100), and n is the total number of monthly payments, then the payment M is:
M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
This is the exact equation banks, credit unions, and online lenders use to set your payment. When the interest rate is zero — as with some promotional financing offers — the formula simplifies to the loan amount divided by the number of months, because there is no interest to spread across the payments. Our calculator handles both cases automatically, so a 0% loan returns the correct interest-free payment rather than an error.
The single biggest lever you control is the loan term. A longer term spreads the balance across more months, which lowers each monthly payment but leaves you paying interest for a longer time. A shorter term does the opposite: the monthly payment climbs, but the total interest drops sharply because the lender is only charging interest for a few years. The table below shows the same $20,000 loan at a 7% annual rate across three common terms so you can see the trade-off at a glance.
| Loan Term | Monthly Payment | Total Interest | Total Repaid |
|---|---|---|---|
| 3 Years (36 months) | $617.54 | $2,231 | $22,231 |
| 5 Years (60 months) | $396.02 | $3,761 | $23,761 |
| 7 Years (84 months) | $301.77 | $5,349 | $25,349 |
Notice that stretching the same loan from 3 years to 7 years cuts the monthly payment nearly in half — from about $618 to $302 — but more than doubles the total interest, from roughly $2,231 to $5,349. Neither choice is inherently right. If a lower monthly payment keeps your budget comfortable and stress-free, the longer term may be worth the extra interest. If your goal is to minimize the total cost of borrowing, the shorter term wins. Running your own numbers in the calculator lets you find the balance that fits your situation.
Because the amortization math is identical for every fixed-rate loan, this calculator works for a wide range of borrowing situations:
Adjustable-rate loans, interest-only loans, and loans with balloon payments follow different repayment rules, so treat the results for those products as a starting approximation rather than an exact figure. For any standard fully amortizing fixed-rate loan, the output matches what your lender will quote.
When you shop for a loan you will see two percentages: the interest rate and the APR. The interest rate is the pure cost of borrowing the principal, and it is the number the payment formula uses. The APR, or Annual Percentage Rate, folds in certain lender fees — most commonly the origination fee — and expresses the whole package as a single yearly percentage. Because the APR includes those costs, it is usually a little higher than the plain interest rate.
The practical takeaway is that APR is the better number for comparing offers from different lenders, since it captures fees that a bare interest rate hides. If you want this calculator to reflect the fuller cost of a loan, enter the APR in the interest rate field. Keep in mind the resulting payment will be a close approximation rather than an exact match, because APR bundles fees into a rate rather than into the balance the way a lender actually charges them.
It helps to understand the difference between simple interest and the amortized interest most consumer loans use. Simple interest is calculated only on the original principal for the entire loan, so a $10,000 loan at 5% simple interest for one year costs a flat $500 regardless of when you pay. Amortized interest, by contrast, is recalculated each period on the remaining balance. As you pay down the principal, the interest charged shrinks along with it.
Nearly all personal, auto, and student loans are amortized, which is why paying down the balance faster reduces future interest. This is also why an amortized loan front-loads interest: with the balance at its highest during the opening months, that is when the interest charge — and therefore the interest share of each payment — is greatest. Understanding this dynamic is the key to using extra payments strategically.
If the monthly payment the calculator shows is higher than your budget allows, there are several levers you can pull. Test each one in the tool to see the effect before committing:
The right combination depends on your priorities. Someone focused on monthly affordability will lean toward a longer term and a lower rate, while someone focused on minimizing total cost will prioritize a shorter term and a smaller principal. Because every scenario recalculates instantly and privately in your browser, you can compare as many combinations as you need until the numbers feel right.
The amortization schedule under your results shows every payment. For each year, or each month if you switch the view, it shows what you paid, how much of it reduced the loan (principal), how much was interest, and the balance you still owe. The Total row adds up to the Total of Payments and Total Interest in your results.
An extra payment each month goes straight to the principal, so less interest builds up afterward and the loan ends sooner. Enter an amount in Extra Payment Each Month and the calculator shows how much sooner the loan is paid off and how much interest you save, compared with the same loan and no extra payments.
Worked example: a $20,000 loan at 7.5% over 5 years has a monthly payment of $400.76. In month 1, $125.00 of it is interest ($20,000 × 7.5% ÷ 12) and $275.76 is principal. Over 60 months the interest adds up to $4,045.54. Paying an extra $100 each month ends the loan in 47 months instead of 60 (1 year 1 month sooner), and the interest falls to $3,080.99, a saving of $964.55.
Getting a number is only useful if you know what to do with it. Here is what each line of your result is telling you and the decision it should inform:
When you run the numbers, the calculator also shows a short plain-language summary beneath your results that translates your specific inputs — the interest as a share of what you borrow and the income a lender would want to see — into what they mean for you.
Suppose David takes out a $20,000 personal loan to consolidate debt. His lender quotes a 9% annual interest rate (APR) and a 5-year term. Here is how the calculator arrives at his payment:
Reading that result: David repays roughly $4,910 in interest — about 25% on top of the $20,000 he borrowed. If he could afford a 3-year term instead, the monthly payment would rise but his total interest would fall sharply; if $415 is too tight, a longer term or a lower rate would ease the monthly figure at the cost of more interest overall. That trade-off is exactly what the next section helps you decide.
Once you have a payment estimate, use it to make a decision rather than just to satisfy curiosity. Which path fits depends on how the number compares to your budget:
A quick reference for the terms you will meet when comparing loans:
The monthly payment uses the standard fixed-rate amortization formula, M = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). When the rate is zero, the payment is simply the loan amount divided by the number of payments. The amortization schedule applies the monthly rate to the balance each month, and any extra monthly amount is added to the principal paid. Total interest is the total of all payments minus the principal. The calculator assumes a fully amortizing fixed-rate loan and does not model origination fees, insurance, or taxes folded into the balance, so a lender's paperwork may differ slightly due to rounding and fees. All math runs in your browser and no inputs are stored or transmitted.
Formula and guidance last reviewed October 2026. Loan rates and fees vary by lender, credit profile, and market conditions — verify current figures with a lender before making a decision. This tool is for planning and education, not financial advice.
Planning the whole picture? These free, private calculators pair naturally with your loan math:
Your monthly payment is calculated with the standard amortization formula: M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments. This produces a fixed payment that covers both interest and principal every month until the balance reaches zero. If the interest rate is zero, the payment is simply the loan amount divided by the number of months.
Amortization is the process of paying off a loan through equal periodic payments that gradually reduce the balance to zero. Early payments are mostly interest because the outstanding balance is large, while later payments are mostly principal as the balance shrinks. The total payment amount stays the same each month, but the split between interest and principal shifts over time. This is why paying extra early in the loan saves the most interest.
Yes. This calculator works for any fixed-rate, fully amortizing loan, including personal loans, auto loans, student loans, home-improvement loans, and small business term loans. The math is identical across loan types because they all use the same amortization formula. Just enter the loan amount, the annual interest rate, and the term. Note that variable-rate loans, interest-only loans, and loans with balloon payments follow different rules and will only be approximated here.
The interest rate is the cost of borrowing the principal, expressed as a yearly percentage. The APR (Annual Percentage Rate) includes the interest rate plus certain lender fees, such as origination fees, rolled into a single yearly figure. Because APR bundles in fees, it is usually slightly higher than the plain interest rate and gives a more complete picture of the loan's true cost. For an apples-to-apples comparison between lenders, compare APRs rather than interest rates alone.
A longer term lowers your monthly payment but increases the total interest you pay, because you are borrowing the money for more months. A shorter term raises the monthly payment but reduces total interest significantly. For example, a $20,000 loan at 7% costs far less in total interest over 3 years than over 7 years, even though the monthly payment is higher. Choosing a term is a trade-off between monthly affordability and total cost.
In most cases yes, and it can save a substantial amount of interest. Because interest is charged on the remaining balance, extra payments applied to principal shrink the balance faster and reduce the interest that accrues afterward. Paying extra early in the loan saves the most because that is when the balance and interest portion are largest. Check your loan agreement first, as some lenders charge prepayment penalties that can offset part of the savings.
It depends on the amount, your rate and the time left on the loan. On a $20,000 loan at 7.5% over 5 years, paying an extra $100 each month ends the loan in 47 months instead of 60 and saves $964.55 in interest. Enter an extra amount in the calculator to see the months saved, the interest saved and the new schedule.
Check your loan agreement for a prepayment penalty, because a fee can cancel out part of the interest you save. When you pay extra, ask your lender to apply it to the principal, not to next month's payment, so the balance and the interest go down. It is also wise to keep some emergency savings before putting extra money toward a loan.
Total interest is the amount you pay above and beyond the original loan amount over the full life of the loan. It equals the total of all payments minus the principal you borrowed. For example, if you borrow $20,000 and repay $23,600 in total, your total interest is $3,600. Total interest is the clearest single number for comparing how expensive a loan really is, and it grows with both higher interest rates and longer terms.
This calculator uses the exact amortization formula that banks and lenders use, so the monthly payment, total interest, and payoff figures are mathematically precise for a fixed-rate loan. Small differences from a lender's paperwork can occur due to rounding, the exact day count method, fees folded into the balance, or insurance and taxes bundled into the payment. Use the results as a highly reliable estimate for planning and comparison, not as a substitute for your official loan documents.
Use it to make a decision, not just to satisfy curiosity. Compare the monthly payment to your budget, keeping in mind that lenders often want your total monthly debt payments to stay under about 36% of your gross income. If the payment fits comfortably, test a shorter term to cut total interest; if it is tight, borrow less, shop for a lower rate, or extend the term for breathing room. Above all, use the total interest figure to judge whether financing the purchase is worth it at all.
The two most common are origination fees and prepayment penalties. An origination fee is a one-time charge to process the loan, often a percentage of the amount borrowed and frequently deducted from the funds you receive, which means you get less than the face amount. A prepayment penalty is a fee for paying the loan off early, and it can offset part of the interest you would save by paying ahead. Also watch for late fees and, on some loans, insurance bundled into the balance. Compare offers by APR, which folds many fees into a single rate.
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