This loan calculator estimates your monthly payment and total interest for a personal, auto, or student loan based on the amount borrowed, the interest rate, and the repayment term.
Most installment loans use the same amortization formula as a mortgage: M = P · r(1+r)ⁿ ÷ ((1+r)ⁿ − 1). Each fixed payment covers the interest accrued that period plus a slice of the principal, so your balance shrinks faster over time.
Two things reduce what a loan costs you overall: a lower interest rate and a shorter term. Making extra payments toward the principal — even occasionally — shortens the loan and saves interest, as long as there is no prepayment penalty.
APR (Annual Percentage Rate) reflects the yearly cost of a loan including certain fees, making it a better comparison tool than the headline interest rate alone.
Yes — extra payments go straight to principal, which lowers the balance interest is charged on and shortens the loan.
A shorter term raises the monthly payment but lowers total interest. Pick the shortest term whose monthly payment fits comfortably in your budget.
This calculator provides estimates for general information only and is not financial advice. Figures are approximate — confirm exact numbers with your lender or a qualified adviser.