Loan Calculator (Auto, Personal, Student)

How it works

Most consumer loans — auto loans, personal loans, federal and private student loans — are fully amortizing fixed-rate loans. That means the lender uses the same formula a mortgage uses to compute a level monthly payment that pays the loan off exactly at the end of the term.

The size of your monthly payment depends on three things: the amount borrowed (the principal), the annual interest rate, and the loan term in years. A longer term lowers the monthly payment but increases total interest dramatically. For example, extending a $25,000 auto loan from 5 to 7 years can cut the monthly payment by 25% but cost almost 50% more in lifetime interest.

Auto loans typically range from 36 to 84 months. Anything past 60 months means you may owe more than the car is worth for several years (negative equity), which is risky if the car is totaled or sold early. Personal loans are usually 1 to 7 years and have higher rates than secured loans because there is no collateral. Student loans have their own ecosystem with subsidized vs. unsubsidized federal options, deferment, and income-driven repayment plans.

When comparing offers, focus on APR rather than the headline interest rate. APR includes fees and origination charges and reflects the true cost of the loan. Two loans with the same monthly payment can have very different APRs if one charges high upfront fees.

If your loan allows extra payments without penalty, paying even a little extra toward principal shortens the term and saves on interest. This is especially valuable on high-rate loans like credit cards and personal loans. For variable-rate loans the monthly payment can change over time — this calculator assumes a fixed rate. Always read the loan agreement.