How to Use This Loan Calculator
- 1Enter your loan amount (how much you're borrowing).
- 2Input the annual interest rate (APR) from your lender.
- 3Select your loan term in years.
- 4Click Calculate Payment — see your monthly payment instantly plus a full amortization schedule below.
Understanding Loan Payments & Amortization
When you take out a loan, each monthly payment is split between interest (the cost of borrowing) and principal (reducing the balance you owe). In the early months, most of your payment goes toward interest. Over time, more goes toward principal — this is called amortization.
For example: a $25,000 personal loan at 8.5% for 5 years has a monthly payment of $513.56. Over the full term you pay $5,814 in interest — 23% of the loan. The amortization table above shows exactly how that breaks down month by month.
2026 Loan Interest Rates by Type
| Loan Type | Typical Rate (Good Credit) | Typical Term |
|---|---|---|
| New Auto Loan | 6.5% – 8.5% APR | 48 – 72 months |
| Used Auto Loan | 8% – 12% APR | 36 – 60 months |
| Personal Loan (720+ credit) | 7% – 12% APR | 2 – 7 years |
| Personal Loan (average credit) | 14% – 24% APR | 2 – 5 years |
| Federal Student Loan (2025–26) | 6.53% – 8.08% fixed | 10 – 25 years |
| Home Equity Loan | 7% – 9.5% APR | 5 – 20 years |
Source: Federal Reserve, Experian, Freddie Mac (2026). Rates vary by lender, credit score, and market conditions.
Tips to Get a Lower Loan Rate
- Improve your credit score before applying — aim for 720+ for the best rates
- Make a larger down payment to reduce the loan-to-value ratio
- Choose a shorter term — lenders typically offer lower rates for shorter terms
- Shop and compare at least 3–5 lenders before committing (rate shopping within 14 days counts as one hard inquiry)
- Consider a credit union — they consistently beat bank rates by 1–2%
- Avoid add-ons (extended warranty, GAP insurance at signing) that inflate the financed amount