Loan Calculator
Monthly payments & total interest
Payment Breakdown
Balance Over Time
This calculator provides estimates for informational purposes only. Actual loan terms, rates, and payments may vary. Consult a financial advisor for personalized advice.
How to Use the Loan Calculator
Calculate monthly payments, total interest, and the full cost of any loan. Our calculator supports mortgages, auto loans, personal loans, and more with live interest rate data.
The Payment Formula
We use the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where M is monthly payment, P is principal, r is monthly interest rate, and n is total number of payments.
Live Rate Data
Current mortgage rates are pulled from Federal Reserve Economic Data (FRED). You can use these as starting points or enter your own rate for custom calculations.
Specialized Loan Calculators
For home loans, use our detailed mortgage calculator with taxes and PMI. For vehicle financing, try our auto loan calculator. View full payment schedules with our amortization calculator. For detailed guidance, read Understanding Mortgage Rates.
Things to Consider
- Lower rates significantly reduce total interest paid
- Shorter terms mean higher payments but less total interest
- Consider additional costs like origination fees and closing costs
- Shop around—rates vary significantly between lenders
Frequently Asked Questions
The formula is: M = P[r(1+r)^n]/[(1+r)^n-1], where M is payment, P is principal, r is monthly interest rate, and n is number of payments. For a $25,000 loan at 5% for 5 years: monthly payment is $471.78. Our calculator handles this automatically.
Good personal loan rates range from 6-12% for borrowers with excellent credit (720+). Average rates are 12-18% for good credit. Rates above 20% are high. Your rate depends on credit score, income, debt-to-income ratio, and lender.
Lenders typically limit total debt payments to 36-43% of gross monthly income. If you earn $5,000/month with existing debts of $500, you could afford roughly $1,300-$1,650 in total monthly payments, including the new loan payment.
Shorter terms have higher monthly payments but save significantly on interest. A $20,000 loan at 7% costs $3,761 in interest over 3 years vs. $7,579 over 5 years. Choose shorter terms if you can afford the payments; longer if you need payment flexibility.
Interest rate is just the cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus fees like origination fees and closing costs, giving you the true annual cost of the loan. Always compare APRs when shopping for loans.
Extra payments go directly to principal, reducing the balance that accrues interest. Paying $50 extra monthly on a $20,000 loan at 7% for 5 years saves $763 in interest and pays off the loan 8 months early.