How to Use This Calculator

How to Use the Loan Calculator

Enter your loan amount, interest rate, and term to calculate your monthly payment and total cost.

Formula

Loan Payment Formula

Uses the standard amortization formula to calculate fixed monthly payments: M = P × [r(1+r)^n] / [(1+r)^n - 1]

Examples

Example: $25,000 Auto Loan

At 7.5% for 5 years = $501/month. Total interest: $5,071.

Frequently Asked Questions

What's a good interest rate for a personal loan?

Rates vary from 6% to 36% based on credit score. Good credit typically gets 8-12%, while excellent credit may get under 8%.

Should I pay off my loan early?

If there's no prepayment penalty and the interest rate is high, paying extra principal can save significant interest.