🏦 Free Loan Calculator

Our free loan calculator helps you estimate monthly payments, total interest, and total cost for any loan. Whether you're shopping for a personal loan, auto loan, or consolidating debt, this monthly payment calculator gives you clear numbers to make informed decisions. Enter the loan amount, interest rate, and term to see your full amortization picture - including the impact of extra payments.

This loan payment calculator uses the standard amortization formula. Your monthly payment is calculated so that each payment covers the interest due plus some principal, gradually paying down the loan over the term. Extra payments go directly to principal, reducing total interest and shortening the loan term.

Where P = loan amount, r = monthly interest rate (annual rate / 12), and n = total months.

Wondering how your rate and term affect your monthly payment? The matrix below shows the monthly payment per $10,000 borrowed across common interest rates and loan terms. To estimate your payment, find the row matching your rate and the column matching your term, then multiply by (your loan amount ÷ $10,000). For example, a $25,000 loan at 8% for 5 years: 2.5 × $202.76 = $506.90/month. For real-estate-specific loans, see our Mortgage Calculator; for the full amortization schedule, try our Amortization Calculator.

Key takeaway: shortening the term raises your monthly payment but dramatically cuts total interest. On a $10,000 loan at 8%, going from 10 years ($121/mo) to 5 years ($203/mo) raises the payment by 67% but reduces total interest from $4,560 to $2,166 — a saving of $2,394. Use the Compound Interest Calculator to compare investment alternatives.

1. Enter loan amount - The total you plan to borrow.
2. Enter interest rate - Your annual percentage rate (APR).
3. Enter loan term - The repayment period in years.
4. Add extra payments (optional) - See how much extra monthly payments save you.
5. Click Calculate - View monthly payment, total interest, and total cost.

What is APR?

APR (Annual Percentage Rate) is the total cost of borrowing including interest and fees, expressed as a yearly rate. Use APR in this calculator for the most accurate results.

Should I use a longer or shorter loan term?

Shorter terms have higher monthly payments but much less total interest. Longer terms have lower monthly payments but cost significantly more overall. Use this calculator to compare both scenarios.

How much can I afford to borrow?

A common rule is that your monthly debt payments (including this loan) should not exceed 36% of your monthly gross income. Use this loan calculator to find a payment that fits your budget.

What is the difference between APR and interest rate?

The interest rate is the cost of borrowing the principal, expressed as a percentage. The APR (Annual Percentage Rate) includes the interest rate plus other costs such as origination fees, broker fees, and some closing costs, giving you the true annual cost of the loan. APR is always equal to or higher than the interest rate. Always compare APRs — not just interest rates — when shopping for loans. By US law, lenders must disclose the APR in your Loan Estimate.

How does an extra payment affect my loan?

Making extra payments reduces the principal faster, which means less interest accrues each month. Even one extra payment per year can shorten a 30-year mortgage by 4–5 years and save tens of thousands in interest. For example, paying an extra $100/month on a $20,000 loan at 8% over 5 years saves about $572 in interest and pays off the loan 13 months early. This calculator has an "Extra Payment" field — enter your additional monthly amount to see the savings instantly.

What is a good interest rate for a personal loan?

As of 2025, personal loan rates typically range from 6% to 36%. Borrowers with excellent credit (760+) may qualify for 6–12%, while those with fair credit (640–699) often see 15–24%. Rates above 24% are considered high and usually indicate subprime or payday-alternative loans. Always compare offers from at least three lenders (banks, credit unions, online lenders) and check both the interest rate and APR before deciding.

Secured vs unsecured loans — what's the difference?

A secured loan is backed by collateral (a car, house, or savings account), which the lender can seize if you default. Because the lender's risk is lower, secured loans typically offer lower interest rates — auto loans average 5–8%, mortgages 5–7%. An unsecured loan (personal loan, credit card) has no collateral, so rates are higher (6–36%) and approval depends heavily on credit score and income. This calculator works for both types.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

Always check your credit score before applying for a loan - a higher score means lower interest rates. Compare offers from at least 3 lenders and look at the total cost, not just the monthly payment. Making extra payments when possible can save thousands over the life of the loan. Use our monthly payment calculator to experiment with different terms and down payments before committing.