Free Loan Calculator 💳

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Quick Presets

Loan Amount

Total amount you're borrowing.

Annual Interest Rate

APR from your lender.

Loan Term60 mo(5.0 yr)

6mo24mo48mo72mo84mo

Type any value (months)

Monthly Payment

$322.41

60 payments at 10.5% APR

Total Interest

$4,344.51

Cost of borrowing

Total Payoff

$19,344.51

Principal + interest

Repayment Breakdown

Principal 78%Interest 22%

$15,000.00

Principal Borrowed

$4,344.51

Interest Paid

You pay back 29.0% of the borrowed amount as interest over the life of this loan.

Payment ScheduleFirst 12 payments

Month	Payment	Principal	Interest	Balance
1	$322.41	$191.16	$131.25	$14,808.84
2	$322.41	$192.83	$129.58	$14,616.01
3	$322.41	$194.52	$127.89	$14,421.49
4	$322.41	$196.22	$126.19	$14,225.27
5	$322.41	$197.94	$124.47	$14,027.33
6	$322.41	$199.67	$122.74	$13,827.66
7	$322.41	$201.42	$120.99	$13,626.25
8	$322.41	$203.18	$119.23	$13,423.07
9	$322.41	$204.96	$117.45	$13,218.11
10	$322.41	$206.75	$115.66	$13,011.36
11	$322.41	$208.56	$113.85	$12,802.80
12	$322.41	$210.38	$112.02	$12,592.42

Formula

M = P [ r(1+r)ⁿ ] / [ (1+r)ⁿ − 1 ]

M = monthly payment

P = principal ($15,000.00)

r = monthly rate = 10.5% ÷ 12 = 0.8750%

n = number of payments = 60

M = $15,000.00 × [0.008750(1+0.008750)^60] / [(1+0.008750)^60−1]

M = $322.41/mo

What is Free Loan Calculator 💳?

A loan calculator applies the standard fixed-rate amortization formula to compute your monthly payment on any installment loan — personal loans, auto loans, student loans, or any fixed-rate debt. Given three inputs (principal, annual interest rate, and term in months), it derives the exact monthly payment and generates a complete payment schedule showing how each payment is allocated between principal reduction and interest charges. The formula is identical to a mortgage: M = P [ r(1+r)ⁿ ] / [ (1+r)ⁿ − 1 ] Where: M = monthly payment P = loan principal (amount borrowed) r = monthly interest rate = annual APR ÷ 12 n = loan term in months Example: A $15,000 personal loan at 10.5% APR for 60 months. r = 10.5% ÷ 12 = 0.875% per month n = 60 M = $15,000 × [0.00875 × (1.00875)^60] / [(1.00875)^60 − 1] = $322.68/month Total paid = $322.68 × 60 = $19,360.80 Total interest = $19,360.80 − $15,000 = $4,360.80 Key insights this calculator surfaces: - **Term vs. Total Cost Trade-off**: Extending a $20,000 auto loan from 48 to 72 months reduces the monthly payment by ~$130 but adds over $2,000 in total interest at typical rates. Longer terms feel cheaper monthly but cost significantly more overall. - **Rate Impact**: On a $25,000 auto loan over 60 months, the difference between 5% and 8% APR is $38/month but over $2,200 in total interest. Credit score improvements that drop your rate by even 1–2 points yield meaningful savings. - **Front-Loaded Interest**: Like all amortizing loans, interest is highest in the early months and decreases as the balance falls. In month 1 of the $15,000 example above, $131.25 of the $322.68 payment is interest. By month 60, only $2.82 is interest. - **Extra Payments**: Paying even $50 extra per month on a 60-month loan can eliminate 4–6 months of payments and reduce total interest by hundreds of dollars. Use this calculator to model different term lengths as a proxy for extra-payment scenarios.

How to Use This Tool

1
Use a Quick Preset to pre-fill typical loan scenarios (personal 3yr, personal 5yr, auto 48mo, auto 72mo), then adjust any field for your specific situation.
2
Enter the Loan Amount — the total principal you're borrowing, not including fees or interest.
3
Enter the Annual Interest Rate (APR) as shown on your loan offer. Even a 0.5% difference significantly affects total cost — try adjusting it to see the impact.
4
Set the loan term using the slider (snaps to 6-month increments from 6–84 months) or type any value directly into the months field. The years equivalent updates automatically.
5
Read your three outputs: Monthly Payment, Total Interest (cost of borrowing), and Total Payoff Amount. The breakdown bar shows what percentage of your total repayment is principal vs. interest.
6
Expand the Payment Schedule to see all monthly payments with the principal/interest split and running balance. The first 12 payments are shown by default.

Real-World Use Cases

Choosing Between 48 and 72-Month Auto Financing

You're buying a $32,000 car and the dealer offers 6.9% APR financing. Apply the "Auto 48mo" preset and change the amount to $32,000: monthly payment is $762, total interest is $4,576. Switch the term to 72 months: monthly drops to $545 — saving $217/month — but total interest jumps to $7,240. That's $2,664 more over the life of the loan for the convenience of a lower payment. The payment schedule for the 72-month option also shows that after 3 years, you've only paid down ~42% of the principal, which matters if you plan to trade in or sell the car before payoff.

Comparing Loan Offers from Different Lenders

You need a $10,000 personal loan. Lender A offers 12% APR for 36 months; Lender B offers 9.5% APR for 48 months. Enter Lender A's numbers: $332/month, $1,967 total interest. Enter Lender B's numbers: $250/month, $1,980 total interest. Surprisingly, the lower-rate longer-term loan costs nearly the same in total interest but $82 less per month. If cash flow is tight, Lender B wins. If you want to be debt-free faster and minimize total cost, Lender A wins at nearly identical total cost. The amortization table makes this comparison visual and precise.

Understanding What a Rate Drop Is Worth

You're refinancing $18,000 in existing personal loan debt. Your current rate is 14% with 48 months remaining. Enter $18,000, 14%, 48 months: monthly payment is $494, total interest remaining is $5,712. Now model a refinance at 9%: monthly drops to $448, total interest is $3,504. That's $46/month and $2,208 saved — before accounting for any refinancing fees. If the refinance fee is $300, payback period is about 7 months ($300 ÷ $46/mo savings). After that, every month you come out ahead. This kind of analysis takes 30 seconds with the calculator.

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