Free loan calculator
Calculate loan monthly payment, total interest, and total cost — enter principal, interest rate, and term, updated live, as you type.
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Fixed-rate amortized loan. Does not include fees, insurance, or taxes. Rates and terms vary by lender.
Results are estimates. Consult a professional.
How the loan calculator works
A standard installment loan charges a fixed interest rate on the remaining balance and spreads repayment across equal monthly payments over the loan term. Each payment covers that month's interest first; the remainder reduces principal. Because the balance falls each month, the interest portion shrinks and the principal portion grows — this is called amortization.
Worked example: $20k loan at 8% over 48 months
A borrower takes out a $20,000 personal loan at 8% APR to fund a home renovation. They choose a 48-month term to keep payments manageable while minimizing total interest compared to a longer term.
Monthly payment by loan amount, rate, and term
Use this table to quickly estimate your monthly payment. Find your loan amount, cross-reference your approximate APR, and choose the term that fits your budget.
| Loan Amount | 6% / 36 mo | 8% / 48 mo | 10% / 60 mo | 12% / 60 mo |
|---|---|---|---|---|
| $5,000 | $152 | $122 | $106 | $111 |
| $10,000 | $304 | $244 | $212 | $222 |
| $15,000 | $456 | $366 | $319 | $333 |
| $20,000 | $608 | $488 | $425 | $445 |
| $30,000 | $912 | $732 | $637 | $667 |
Source: Federal Reserve Consumer Finance Survey; calculated using standard amortization formula
Tips for getting the best loan terms
The rate and term you're offered depend heavily on your credit profile and how you shop. Even a 1–2 percentage point difference in APR can save hundreds to thousands of dollars over a loan's life.
- Shop at least three lenders — rates for the same borrower vary significantly between banks, credit unions, and online lenders; getting multiple quotes takes 10 minutes and can save thousands.
- Check your credit report before applying — errors on your credit file can cost you 1–3 percentage points on your rate; dispute inaccuracies at annualcreditreport.com before any loan inquiry.
- Choose the shortest term you can comfortably afford — a shorter term means a higher monthly payment but dramatically less total interest; use this calculator to find the sweet spot.
- Consider a credit union — federal credit unions cap personal loan APR at 18% and often offer rates 1–3 points below traditional banks for the same credit profile.
- Avoid prepayment penalty loans — if you plan to pay extra or refinance, make sure the loan has no prepayment penalty; those fees can erase the savings from early payoff.
Accuracy and limitations
This calculator uses the standard amortization formula and assumes a fixed interest rate for the entire loan term. It does not account for origination fees, prepayment penalties, lender-specific rounding, or the effect of a first payment date that differs from the loan origination date. Actual lender quotes may vary slightly. For auto loans, the total cost of ownership includes insurance, maintenance, and registration fees not modelled here.
Not financial advice — consult a financial professional for your specific situation.
Loan terms defined
About this loan calculator
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