💳 Loan Calculator

Calculate monthly payments, total interest, and see your full payoff schedule for auto, personal, student, or any type of loan.

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How to Use the Loan Calculator

  1. 1Enter your loan amount.
  2. 2Input the annual interest rate (APR).
  3. 3Select your loan term in years.
  4. 4Click Calculate Payment for instant results.

Understanding Loan Payments

When you take out a loan, each monthly payment is split between interest (the cost of borrowing) and principal (reducing the balance). In the early months, most of your payment goes toward interest. Over time, more goes toward principal — this is called amortization.

Average 2025 Loan Rates by Type

  • New auto loan (60 months): 6.5%–8.5% APR
  • Used auto loan: 8%–12% APR
  • Personal loan (excellent credit): 7%–12% APR
  • Federal student loan: ~6.5%–8.05% for 2024–25
  • Home equity loan: 7%–9% APR

Tips to Get a Lower Loan Rate

  • Improve your credit score before applying (aim for 720+)
  • Make a larger down payment to reduce the loan-to-value ratio
  • Choose a shorter loan term — lenders offer lower rates
  • Shop and compare at least 3–5 lenders before committing
  • Consider a credit union — they often beat bank rates

Frequently Asked Questions

The interest rate is the basic cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus fees and other costs, giving you the true annual cost of the loan. Always compare APRs when shopping for loans.
Shorter terms mean higher monthly payments but you pay far less total interest. Longer terms lower monthly payments but increase total cost. If you can afford the higher payment, a shorter term saves significant money.
Most personal and auto loans allow early payoff without penalties. However, some loans have prepayment penalties — check your loan agreement. Paying extra toward principal each month can save hundreds or thousands in interest.