Personal, auto & student loan payments.
Personal, auto & student loan payments.
Enter the total loan amount, the annual interest rate, and the repayment term in months or years. The calculator instantly shows your fixed monthly payment, the total amount repaid over the life of the loan, and the total interest cost. Use this for personal loans, auto loans, student loans, or any fixed-rate installment debt.
The formula behind this calculator is standard amortization โ each payment is the same size, but the interest/principal split shifts each month. Early payments are mostly interest; later ones are mostly principal. Understanding this helps you see why paying off loans early โ or refinancing at a lower rate โ saves so much money.
Three variables determine your payment: loan amount, interest rate, and term. Of the three, interest rate has the largest long-run effect on total cost, while term length has the largest effect on monthly affordability. A longer term lowers your payment but dramatically increases total interest paid.
Example: A $20,000 personal loan at 12% interest over 3 years costs $664/month and $3,900 total interest. Extend that to 5 years and the payment drops to $445/month โ but total interest jumps to $6,700. You pay $2,800 more for the same loan simply by taking longer to repay.
The type of loan matters for the rate you'll get:
The most powerful lever is your credit score โ improving it before applying for any major loan is almost always worth the wait. Going from a 650 to a 720 credit score might drop your personal loan rate from 18% to 11%, saving thousands on a $15,000 loan. Other strategies: make biweekly payments instead of monthly (effectively making one extra payment per year), pay even $25โ$50 extra per month, or refinance if rates have dropped since you borrowed.
The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus fees, origination charges, and other costs โ it's the true annual cost of the loan. Always compare APR when shopping loans, not just the stated rate.
Some lenders charge prepayment penalties โ typically 1โ3% of the remaining balance โ if you pay off early. Always check your loan agreement before making extra payments. Most personal and student loans have no prepayment penalty.
Lenders generally want your total monthly debt payments (including this new loan) to be under 36% of your gross monthly income. Above 43% significantly reduces your chances of loan approval. Use this calculator to check if the monthly payment fits within that range before applying.