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Loan Calculator

Calculate your monthly loan payment and total interest for any personal, auto, or student loan. Instant results — free tool.

Loan Details

$
%

Your Estimate

Monthly Payment

$405.53

60 months · 8% APR

Loan Amount$20,000
Total Interest$4,332
Total Payment$24,332
Payoff DateApr 2031
● Principal 82%● Interest 18%

Results are estimates. Actual loan terms depend on your lender, credit profile, and applicable fees. Not financial advice.

How the Loan Calculator Works

This calculator uses the standard amortizing loan formula to compute your fixed monthly payment. Every payment covers accrued interest first; the remainder reduces your principal. Over time, the interest portion shrinks and the principal portion grows.

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

Where P = loan principal, r = monthly rate (APR ÷ 12), n = loan term in months. This is the same formula used by banks and credit unions worldwide.

Personal Loan vs Auto Loan vs Student Loan

Personal loans are unsecured (no collateral), so rates are higher — typically 6%–36% APR. Terms range from 12 to 84 months. Used for debt consolidation, home improvement, medical bills, or large purchases.

Auto loans are secured by the vehicle, so rates are lower — typically 4%–12% APR for new cars, slightly higher for used. Standard terms are 36–72 months.

Student loans have fixed federal rates set annually by Congress, or variable private loan rates. Federal rates for 2024–25 range from 6.53% to 9.08% depending on the loan type.

Frequently Asked Questions

What is a good interest rate for a personal loan?
Personal loan rates typically range from 6% to 36% APR depending on your credit score, income, and lender. Borrowers with excellent credit (720+) often qualify for rates below 12%. Average personal loan rates in 2024 are around 12%–15% APR.
How do I calculate a monthly loan payment?
Monthly payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. This calculator computes it instantly as you type.
Is it better to get a shorter or longer loan term?
A shorter loan term means higher monthly payments but less total interest paid. A longer term reduces your monthly payment but costs more overall. For personal loans, terms of 24–60 months are most common. Choose the shortest term your budget allows.
What is an auto loan calculator used for?
An auto loan calculator helps you estimate your monthly car payment based on the vehicle price, down payment, trade-in value, loan term, and interest rate. It helps you compare dealer financing versus bank or credit union loans.
Does paying off a loan early save money?
Yes, paying off a loan early reduces the total interest you pay. Some loans have prepayment penalties — check your loan agreement. If there is no penalty, making extra payments or a lump-sum payment can save you hundreds or thousands of dollars.