Loan Calculator
Monthly payment, total interest, and payoff timeline — for any loan type.
A loan calculator computes your fixed monthly payment on any loan — personal, auto, mortgage, student, or business — based on the amount borrowed, interest rate, and repayment term. Enter your numbers to instantly see your monthly payment, total interest cost over the life of the loan, and how much faster you could pay it off with extra monthly payments.
How a Loan Payment Is Calculated
Every fixed-rate amortizing loan — regardless of type — uses the same present-value-of-an-annuity formula to compute a level payment that fully repays the loan (principal plus interest) by the end of the term.
| Variable | Definition | Example |
|---|---|---|
| P | Principal (amount borrowed) | $20,000 |
| r | Monthly rate (annual ÷ 12) | 11.5% ÷ 12 = 0.9583% |
| n | Total months | 4 yrs × 12 = 48 |
| Payment | Fixed monthly amount | $521.10/month |
Worked example: $20,000 at 11.5% for 4 years. Monthly payment = $521.10. Total paid = $25,012.80. Total interest = $5,012.80 — exactly 25% more than the amount borrowed, purely from the rate and term chosen.
2026 Typical Rates by Loan Type
| Loan Type | Typical 2026 Rate | Typical Term |
|---|---|---|
| Personal Loan | 8% – 20% (credit-dependent) | 2 – 5 years |
| Auto Loan | 7.5% new / 10.5% used | 4 – 7 years |
| Mortgage (30-yr fixed) | ~6.5% – 7% | 15 – 30 years |
| Federal Student Loan | 6.39% undergrad / 7.94% grad | 10 – 25 years |
| Business Term Loan | Prime (6.75%) + 2% – 7% | 3 – 10 years |
Rates are 2026 market averages for well-qualified borrowers and vary by lender, credit profile, and loan size. Selecting a loan type below auto-fills these as a starting point — always confirm your actual rate with a lender.
💡 Pro-Tip
Compare Loan Type, Not Just Rate: A lower rate isn't always the cheaper loan. A 4-year personal loan at 11.5% can cost less in total interest than a 7-year auto loan at 7.5%, simply because the shorter term means less time for interest to accrue. Before comparing offers, match the term first — then compare rate and fees. Use the Scenario A vs. B compare mode above to put two different loan types (or two offers for the same loan) side-by-side.
Loan Calculator
Loan Details
Your Results
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $4,177 | $2,084 | $15,823 |
| 2 | $4,683 | $1,578 | $11,140 |
| 3 | $5,251 | $1,010 | $5,888 |
| 4 | $5,888 | $373 | $0 |
Based on your results — what to do next:
Get a personal loan-specific breakdown
The Personal Loan Calculator adds the extra details lenders actually use for a personal loan — like origination fees and effective APR.
Have more than one loan to juggle?
You're paying $5,045 in interest on this loan alone. See the fastest payoff order across all your debts with snowball vs. avalanche.
What if that interest was invested instead?
$5,045 in interest is real money. See what it would grow to if invested at 7% over the same 4 years instead of paid to a lender.
Loan Calculator FAQ
How do I calculate a loan payment?
Monthly payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the loan amount, r is the monthly rate (annual ÷ 12), and n is the total number of payments. Example: a $20,000 loan at 11.5% for 4 years (r = 0.9583%, n = 48) → payment ≈ $521.10/month. Use the calculator above to run any amount, rate, or term instantly.
What loan types can this calculator handle?
Any fixed-rate, fixed-term amortizing loan — personal, auto, mortgage, student, or business. The math is identical across all of them; only the typical rate and term differ. Pick a loan type to auto-fill a realistic 2026 starting point, or overwrite it with your own exact quote.
How much does adding an extra monthly payment save?
Extra payments apply entirely to principal, shrinking the balance that interest is calculated on for every remaining month. On a $20,000 personal loan at 11.5% over 4 years, an extra $100/month cuts the payoff time by roughly 10 months and saves over $600 in interest. Enter your own numbers above to see the exact savings.
Should I use this calculator or a loan-specific one?
This tool is built for a fast estimate or for comparing loan types side-by-side. For the details lenders actually underwrite with — an auto loan's trade-in and sales tax, a mortgage's PMI and escrow, or a student loan's income-driven repayment options — switch to the dedicated calculator linked in your results.
What's the difference between interest rate and APR?
The interest rate only prices the cost of borrowing the principal. APR layers in lender fees (like origination charges), so it's always equal to or higher than the stated rate — and it's the correct number to use when comparing offers from different lenders. Use the APR Calculator to convert a rate-plus-fees offer into a true APR.