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Loan Calculator — Monthly Payment & Total Interest
Work out your monthly payment on any loan — auto, personal, or student. Enter the principal (amount borrowed), the annual interest rate, and the term in years.
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monthly payment
Total interest
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Compounded monthly. To see how much of each payment is interest vs principal, get an official amortization schedule from the lender.
How loan payments are calculated
Each month the lender charges interest on the remaining principal, then applies the rest of your payment to the balance. Early in the term, most of your payment is interest; later, most is principal. A 7% loan on $25,000 over 5 years costs about $495/month, with $4,700 of that being interest — a reminder of why shorter terms save money.
How this calculator works
The standard formula is M = P × (r(1+r)ⁿ) / ((1+r)ⁿ - 1), where M is monthly payment, P is principal, r is monthly interest rate (annual / 12), and n is number of months.
Frequently asked questions
How does the loan term affect total interest?
A 5-year loan at 7% on $25,000 costs about $4,700 in interest. The same loan over 3 years costs about $2,700 in interest but the monthly payment is $775 instead of $495. Shorter terms save thousands but require higher monthly cash flow.
What interest rate should I use for a car loan?
New car loans in the US were 6-7% in 2024-2025, used car loans 8-11%. Subprime borrowers (below 670 FICO) can pay 15-20%. Use your actual loan offer if you have one, or your credit tier estimate if you are pre-shopping.
Should I make extra payments on my loan?
Yes, even one extra payment per year can shave 4-6 years off a 30-year mortgage and save tens of thousands in interest. Most loans accept early principal payments without penalty, but verify before making extras.
Last updated — rates and figures change over time, so always confirm with the current source.
Estimates for general information only, not financial advice — see our disclaimer.