Calculate monthly payments, total interest, and payoff schedule for any fixed-rate loan — personal, auto, student, or business. Compare loan terms and see amortization details.
Whether you are financing a car, consolidating credit card debt, or paying for education, knowing your monthly loan payment before you sign is essential. This loan payment calculator works for any fixed-rate installment loan — personal loans, auto loans, student loans, and small business loans.
Enter the amount you plan to borrow, the annual interest rate, and the repayment term. The calculator instantly shows your fixed monthly payment, total interest over the life of the loan, and total amount repaid. You can also enter extra monthly payments to see how much time and money you can save by paying ahead of schedule.
Unlike revolving credit (like credit cards), installment loans have a fixed end date. Each payment is split between interest and principal reduction, with more going to interest early on and more to principal later. Understanding this amortization pattern helps you make smarter borrowing decisions and avoid paying more than necessary.
Lenders often advertise low monthly payments by extending the loan term, but longer terms mean dramatically more interest. A $25,000 auto loan at 7% costs $4,702 in interest over 5 years but $8,580 over 7 years — nearly double. This calculator lets you compare terms side-by-side so you can find the sweet spot between affordable payments and minimum total cost.
It is also invaluable when refinancing. If you have an existing loan at 9% and are offered 6.5%, you can instantly see how much your payment drops and how much you save in total interest.
M = P × [r(1+r)^n] / [(1+r)^n − 1] Where: M = fixed monthly payment P = loan principal r = monthly interest rate (APR ÷ 12 ÷ 100) n = total payments (years × 12)
Result: $495.03/month
Borrowing $25,000 at 7% APR for 5 years results in a fixed monthly payment of $495.03. You will pay $4,702 in total interest, bringing the total repaid to $29,702. Extending to 7 years drops the payment to $374.79 but increases total interest to $6,482.
Each monthly payment is divided between interest and principal. Early in the loan, most of your payment covers interest. Over time, as the principal decreases, more of each payment goes toward reducing the balance. This front-loaded interest structure is why extra payments in the early years have the biggest impact.
When shopping for loans, create a simple comparison: enter each lender's rate and term into the calculator and note the monthly payment and total interest. A loan with a slightly higher rate but no origination fee may actually cost less than a lower-rate loan with a 2% origination fee. Always compare the total amount repaid.
Refinancing makes sense when you can secure a rate at least 1% lower than your current rate and you have enough time remaining on the loan for the interest savings to exceed refinancing costs. Use this calculator to compare your current remaining balance and rate against the new offer.
Any fixed-rate installment loan: personal loans, auto/car loans, student loans, boat loans, and small business term loans. It does not apply to revolving credit lines or variable-rate loans.
The interest rate is the cost of borrowing the principal. APR includes the interest rate plus any fees (origination, closing costs) spread over the loan term. APR is always equal to or higher than the interest rate and gives a more accurate cost picture.
This calculator computes principal plus interest only. Origination fees, late fees, and insurance are not included. Use the APR rather than the base rate to approximate total cost including fees.
Shorten the loan term, make extra payments toward principal, refinance at a lower rate, or make a larger down payment (for auto/equipment loans). Even $50/month extra on a $25,000 loan can save hundreds in interest.
Extra payments reduce the principal balance faster, which means less interest accrues each month. This shortens the loan term and saves money. The calculator shows you exactly how much time and interest you save.
Biweekly payments (every two weeks) result in 26 half-payments per year — equivalent to 13 monthly payments instead of 12. This extra payment per year reduces the term and total interest.
Longer terms have lower monthly payments but much higher total interest. A $25,000 loan at 7% costs $4,702 interest over 5 years but $8,580 over 7 years. Always compare total cost, not just the monthly payment.