Loan Calculator
Calculate your monthly loan payment, total interest, and see how extra payments save you money. Works for auto, personal, student, and any other loan.
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Loan Details
Your Monthly Payment
$507
/month
Total Payment
$30,415
Total Interest
$5,415
Payoff Date
March 2031
Payoff Time
5y 0m
Loan Scenarios
Auto Loan
Calculate your car payment for a new or used vehicle....
Personal Loan
Unsecured personal loan for any purpose....
Student Loan
Calculate repayment for federal or private student loan...
Home Equity Loan
Fixed-rate loan using your home equity as collateral....
Debt Consolidation
Combine multiple debts into one lower-rate payment....
Medical Loan
Finance medical procedures and unexpected health expens...
Home Improvement Loan
Finance renovations that add value to your home....
Boat / RV Loan
Financing for recreational vehicles and watercraft....
Understanding Loans
How Loan Payments Work
Most loans use amortization: your monthly payment stays the same, but the split between principal and interest changes over time. Early payments are mostly interest. As you pay down the balance, more of each payment goes toward principal.
Fixed vs Variable Rate
Fixed-rate loans keep the same rate for the entire term, making budgeting predictable. Variable-rate loans start lower but can increase. For most borrowers, fixed rate is safer. Variable rates only make sense if you plan to pay off the loan quickly.
The Power of Extra Payments
Even small extra payments make a big difference. Adding $100/month to a $25,000 loan at 8% saves $2,800 in interest and pays it off 14 months early. Extra payments go directly to principal, which reduces the balance that generates interest each month.
APR vs Interest Rate
The interest rate is the cost of borrowing. APR (Annual Percentage Rate) includes fees and charges, giving you the true cost. Always compare APRs, not just interest rates. A lower rate with high fees can cost more than a slightly higher rate with no fees.
Average Loan Rates by Type (2026)
| Loan Type | Typical Rate | Typical Term | Typical Amount |
|---|---|---|---|
| Auto (new) | 5.5-8% | 4-6 years | $30-45K |
| Auto (used) | 7-11% | 3-5 years | $20-30K |
| Personal | 6-36% | 2-7 years | $5-50K |
| Student (federal) | 5.5-8% | 10-25 years | $20-50K |
| Student (private) | 3-15% | 5-20 years | $10-100K |
| Home Equity | 7-10% | 5-30 years | $25-200K |
| Debt Consolidation | 7-25% | 2-7 years | $10-50K |
Frequently Asked Questions
How is my monthly loan payment calculated?
Your monthly payment is calculated using the standard amortization formula based on loan amount, interest rate, and term length. The formula ensures equal payments throughout the loan, with the interest-to-principal ratio shifting over time.
Should I choose a shorter or longer loan term?
A shorter term means higher monthly payments but less total interest. A longer term lowers payments but costs more overall. For example, a $25,000 loan at 8% costs $5,500 in interest over 4 years but $10,800 over 7 years. Choose the shortest term you can comfortably afford.
Can I pay off my loan early without penalties?
Most personal loans and auto loans have no prepayment penalties. Some lenders charge a fee for early payoff, typically 1-5% of the remaining balance. Always check your loan agreement. Federal student loans never have prepayment penalties.