Loan Calculator
Calculate monthly payments, total interest, and amortization for any loan — auto, personal, student, or business. Free 2026 loan payment calculator.
How to Use the Loan Calculator
Enter the loan amount, the annual interest rate (your lender's quoted rate, not APR), and the loan term in months or years. The calculator returns the monthly payment, total interest you'll pay over the life of the loan, and the grand total cost. Adjust the term to see how shorter or longer payoff windows change your total cost.
For most consumer loans, this calculator assumes a standard amortizing loan with fixed monthly payments — the type used for auto loans, personal loans, student loans, and mortgages. Specialty loans like interest-only, balloon, or variable-rate loans require different math and are not modeled here.
The Real Cost of Borrowing
A loan's monthly payment hides the true cost. A $30,000 auto loan at 8% over 6 years has a comfortable $526 monthly payment — but you pay $37,898 total. That's nearly $8,000 in interest, almost a quarter of the original loan. Stretch to 7 years and the monthly drops to $464, but interest balloons to $9,000. Always run the totals before signing.
Auto Loans vs Personal Loans vs Student Loans
Auto loans use the vehicle as collateral, keeping rates low (5–9% for good credit). Personal loans are unsecured and rate-priced on credit alone (8–18%). Student loans (federal) have fixed legislated rates (4–7%) with income-based repayment options private loans lack. Home equity loans use your home as collateral and offer the lowest consumer rates (6–9%) but put your home at risk if you default.
For the same purchase, always prefer the secured option if available. The 3–5% rate difference compounds enormously over a 5-year loan.
How Payments Are Structured
Every loan payment splits between interest (paid first) and principal (whatever's left). In month 1 of a 60-month $20,000 loan at 7%, about $117 goes to interest and $279 to principal. By month 60, only $2 is interest and $394 is principal. This is why making extra payments in the first year saves so much more than extra payments late in the loan — early principal reductions compound across the entire remaining term.
Smart Loan Strategies
Four moves that save thousands: (1) shop at least 3 lenders — credit unions often beat banks by 0.5–1%; (2) get pre-approved before negotiating purchase price so you know your true budget; (3) make biweekly payments instead of monthly (cuts a 5-year loan to about 4 years 7 months); (4) round payments up to the next $25 — small bumps shave months off the term. The amortization table shows exactly how extra principal payments shorten the loan and slash interest.
When NOT to Take a Loan
Skip the loan if any of these apply: you'd be borrowing to pay for normal monthly bills (a sign your budget is broken — fix that first), the item depreciates faster than you'll pay it off (negative equity trap), the loan stretches beyond the useful life of the purchase, or the monthly payment exceeds 10% of your take-home income. If you're already carrying credit card debt above 20% APR, prioritize paying that down before taking new loans. Run your numbers through our net worth tracker to see the full debt picture first.