Free Loan Calculator
Calculate your monthly payment, total interest, and effective APR for any loan.
Principal vs. Interest per Payment
Amortization Schedule
| Month # | Payment | Principal | Interest | Remaining Balance |
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🔒 All calculations happen in your browser. No data is ever sent to a server.
How It Works
Enter your loan amount, rate and term
Personal, auto, student — any fixed-rate loan.
Add an origination fee if you have one
Most lenders charge one — this one is optional.
Get your payment, total cost and true APR
Instantly, with a full month-by-month schedule.
Understanding Your Loan Payment
A loan calculator estimates the monthly payment you'll owe on a fixed-rate installment loan — a personal loan, an auto loan, a student loan, or any financing that's repaid in equal monthly installments. Enter your loan amount, interest rate, and term, and you'll see your payment, total interest, and a complete schedule showing exactly how each payment splits between principal and interest.
One thing that trips up a lot of borrowers is confusing the interest rate with the APR. The interest rate is simply the percentage applied to your outstanding balance to compute the interest portion of each payment. The APR, or Annual Percentage Rate, is a more complete picture of what the loan actually costs you: it factors in upfront charges like an origination fee, spreading that extra cost across the life of the loan. Two loans with the identical interest rate can have very different APRs if one lender charges a fee and the other doesn't — which is exactly why regulators require APR disclosure and why it's the number you should lean on when shopping around.
An origination fee is a one-time charge, usually a percentage of the loan amount, that a lender deducts before disbursing your funds. You still owe — and repay — the full loan amount through your monthly payments, but you receive less cash upfront. That gap between what you borrow and what you actually receive is what pushes your effective APR above the stated interest rate.
Loan term is the other major lever. A shorter term means a higher monthly payment but meaningfully less interest paid overall, since the lender is owed the money for less time. A longer term eases your monthly budget at the cost of paying more interest across the life of the loan. Rates themselves also vary by loan type: auto loans are typically secured by the vehicle and priced lower than unsecured personal loans, while student loans often carry their own government-set or subsidized rates.
The most useful way to use this calculator is to run every offer you're considering through it with its actual rate, term, and any fee — then compare the resulting APR, not just the headline interest rate, to find the genuinely cheaper loan.
Frequently Asked Questions
How is my monthly loan payment calculated?
Your monthly payment is calculated using the standard French amortization formula: M = P × r / (1 − (1 + r)^−n), where P is the loan amount, r is your monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12 plus any extra months). This produces a fixed payment for the life of the loan, with the mix of principal and interest shifting over time.
What is the difference between interest rate and APR?
The interest rate is what's applied to your outstanding balance each month to compute interest. APR (Annual Percentage Rate) is a broader measure of the true cost of borrowing — it factors in upfront costs like origination fees, so it's usually higher than the stated interest rate whenever fees are charged. APR is the number you should use when comparing loan offers with different fee structures.
What is an origination fee and how does it affect my loan?
An origination fee is an upfront charge some lenders deduct from your loan proceeds to cover processing costs, typically expressed as a percentage of the loan amount. You still repay the full loan amount through your monthly payments, but you receive less cash upfront — which is exactly why the effective APR ends up higher than the stated interest rate.
Should I choose a shorter or longer loan term?
A shorter term means higher monthly payments but significantly less total interest paid, since you're borrowing the money for less time. A longer term lowers your monthly payment and eases cash flow, but you'll pay more in interest over the life of the loan. Pick the shortest term whose monthly payment comfortably fits your budget.
Can I use this calculator for auto loans and student loans?
Yes. This calculator works for any fixed-rate installment loan — personal loans, auto loans, student loans, or general financing. Just enter the loan amount, rate, and term your lender quoted you. Keep in mind auto and student loans sometimes have their own fee structures or subsidized interest periods that a lender's official disclosure will reflect more precisely.
How do I compare two loan offers with different rates and fees?
Run each offer through the calculator separately using its own rate, term, and origination fee, then compare the effective APR of each — not just the advertised interest rate. The offer with the lower APR is the cheaper loan overall, even if its stated interest rate looks similar or slightly higher, because APR already accounts for upfront fees.