Loan Calculator
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What Your Result Means
- Monthly Payment: The fixed amount you pay each month for the life of the loan. This includes both principal repayment and interest charges.
- Total Paid: The sum of all monthly payments over the full term. Compare this to the loan amount to see the true cost of borrowing.
- Total Interest: The total cost of borrowing — the difference between what you pay back and what you borrowed. A higher rate or longer term increases this significantly.
- Payoff Date: The month and year your final payment is due, assuming you make every payment on schedule with no early payoffs or missed payments.
How This Calculator Works
You enter a loan amount, term length (in years or months), and annual interest rate. The tool applies the standard fully-amortizing PMT formula with monthly compounding to compute the fixed monthly payment. It then multiplies by the number of months for total paid and subtracts the principal for total interest. The payoff date is projected from today.
Quick Questions
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. The APR (Annual Percentage Rate) includes the interest rate plus fees like origination charges, rolled into a single annualized figure. APR gives a more complete picture of total borrowing cost, but this calculator uses the interest rate alone.
Should I choose a shorter or longer term?
A shorter term means higher monthly payments but significantly less total interest. A longer term lowers your monthly payment but increases the total cost. The right choice depends on your monthly budget and how much you want to minimize interest expense.
Does this include fees?
No. Origination fees, application fees, prepayment penalties, and credit insurance are not included. Your actual cost of borrowing may be higher. Ask your lender for the APR and total cost disclosure before signing.
Can I pay off the loan early?
Most personal and auto loans allow early payoff without penalty, but check your loan agreement. Paying extra each month reduces the principal faster and saves interest. Use our Loan Payoff Calculator to see the impact of extra payments.
Sources
- CFPB — What Is a Personal Loan? (loan basics, fees, and borrower protections)
- Federal Reserve G.19 — Consumer Credit (benchmark consumer loan interest rates)
Method & review
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.