How to use this loan calculator
Enter the loan amount, the annual interest rate (APR), and the term in years. You'll instantly see the fixed monthly payment, the total you'll repay, and the total interest cost. It works for personal loans, student loans, debt consolidation and most installment loans. To see how each payment splits between interest and principal, open the amortization calculator.
The formula
Fixed-rate loans use the standard amortization formula M = P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r the monthly rate, and n the number of monthly payments. Each payment is identical, but the split between interest and principal shifts over time. Home loans use the same formula with extra escrow items in the mortgage calculator.
Worked example
A $15,000 loan at 9% over 5 years has a monthly payment of about $311. You'd repay roughly $18,700 in total — about $3,700 of interest. Paying it off faster, or qualifying for a lower APR, reduces that interest cost. For a vehicle, the auto loan calculator adds trade-in and down payment fields.
APR vs interest rate
The interest rate is the cost of borrowing the principal. The APR also includes certain fees, so it's usually slightly higher and a better figure for comparing offers. For the most accurate result, enter the APR your lender quotes.
Frequently asked questions
- Can I use this for a personal or student loan?
- Yes. Any fixed-rate installment loan with equal monthly payments works — personal, student, auto or consolidation loans.
- What's the difference between APR and interest rate?
- The interest rate covers the principal; APR also folds in certain fees, so it's a fairer way to compare loan offers.
- Does paying extra reduce total interest?
- Yes. Extra payments go straight to principal, shortening the term and cutting total interest.
- Do I enter the term in years or months?
- Enter it in years; the calculator converts the term to monthly payments by multiplying by 12. A 5-year loan is therefore 60 equal payments, and a 3-year loan is 36.
- Does the result include fees or insurance?
- No. It covers principal and interest only, so origination fees, late charges and payment protection insurance sit on top. Treat the figures as an estimate for general information rather than financial advice, and confirm the final numbers with your lender.