Enter the amount borrowed, interest rate and term to see your monthly payment, total interest and a year-by-year payoff schedule.
How to use this calculator
Enter the amount you want to borrow — the principal, before any interest.
Set the annual interest rate from your loan offer. To compare offers fairly, use the APR, which includes fees.
Choose the term in years. Most car loans run 3–7 years, personal loans 1–5.
Read the monthly payment, total interest and total repaid in the result panel — they update live.
Scroll down for the yearly payoff schedule, and use Share to compare scenarios with someone else.
Formula & method
How the fixed monthly payment is calculated
M = P × r(1 + r)^n / ((1 + r)^n − 1)
M = monthly payment · P = amount borrowed · r = monthly rate (annual ÷ 12) · n = number of payments (years × 12). Each payment covers that month's interest first; the remainder reduces the balance.
Example
A $20,000 loan at 7.5% over 5 years: r = 0.00625, n = 60 → monthly payment ≈ $400.76 and about $4,045 of total interest.
Key insights
On a 5-year loan at 7.5%, total interest is about 20% of the amount borrowed; stretching the same loan to 10 years roughly doubles that share.
Interest is charged on the remaining balance, so early payments are interest-heavy and the balance falls slowly at first.
A rate drop from 7.5% to 6% on a $20,000, 5-year loan saves roughly $850 in total interest.
Extra principal payments shorten the term and cut total interest — there is no way to 'prepay' interest.
Shorter terms almost always cost less overall, even when the higher monthly payment feels steep.
How to interpret your result
Debt-to-income impact
Lenders add up all your loan payments. Keeping total debt payments under 36% of gross monthly income (the '36% rule') is a common approval benchmark.
Total interest vs purchase price
For a financed purchase like a car, add the total interest to the sticker price — that sum is what the item really costs you.
Remaining balance and resale
If you might sell a financed car early, check the schedule: owing more than the car's resale value ('negative equity') is common in the first years.
APR vs interest rate
If your offer charges origination or processing fees, the true cost is higher than this estimate. Compare competing offers using APR, not the nominal rate.
Frequently asked questions
What types of loans does this work for?
Any fixed-rate, fully amortized loan: car loans, personal loans, student loans with fixed rates. It does not model variable rates or interest-only periods.
How can I pay less interest?
Three levers: a lower rate, a shorter term, or extra principal payments. Even small extra payments early in the loan cut interest disproportionately, because interest is charged on the remaining balance.
What is APR vs interest rate?
The interest rate is the cost of borrowing the principal. APR also folds in fees and closing costs, so it is usually slightly higher and better for comparing offers.
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