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Loan payment calculator
The monthly payment is only half the story — see the total interest too.
Car loan, personal loan, or any fixed-rate amortizing loan: enter the amount, APR, and term to see your monthly payment and exactly how much interest you'll pay over the life of the loan.
Results
Monthly payment
$0.00
Principal + interest, every month
Total interest$0.00
Total you'll pay$0.00
Schedule$0.00
Monthly payment$0.00
Shortening the term is the cheapest lever: on a $20,000 loan at 6.5%, 4 years instead of 5 saves roughly $700 in interest.
Assumptions
Last checked: September 2026 · Country: United States
Rate type: Fixed APR, monthly compounding
Payments: Fully amortizing — the balance hits zero at the last payment
Excluded: Origination fees, insurance, taxes, and variable-rate changes
Illustrative only. Your lender's disclosure is authoritative — compare APRs, not just monthly payments.
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Why the monthly payment misleads
Lenders advertise the monthly payment because stretching the term makes it shrink — while total interest quietly grows. A $20,000 loan at 6.5% costs about $391/month over 5 years but $3,479 in total interest; over 7 years it's $297/month and $4,926 in interest. Same car, $1,447 more paid. The calculator shows both numbers so you can judge the trade.
The cheapest lever: term, then rate
Cutting one year off the term usually saves more than shaving half a point off the APR, because interest compounds on the balance for fewer months. If you can't shorten the term, extra principal payments attack the same math — every extra dollar goes straight at the balance. Compare that with the debt payoff calculator when you're choosing which balance to attack first.
APR vs interest rate
The APR folds most lender fees into one yearly rate, which is why it's the number to compare across offers. Two loans with the same interest rate can have different APRs once origination fees are included — always compare APR to APR.
Frequently asked questions
How is a loan payment calculated?
With the amortization formula: monthly payment = P × r / (1 − (1+r)^−n), where P is the amount borrowed, r is the monthly rate (APR ÷ 12), and n is the number of payments. Early payments are mostly interest; later ones are mostly principal.
Does a longer term always cost more?
Almost always, yes — you pay interest for more months on a declining balance. A longer term lowers the payment but raises total interest. Run both terms above and compare the total-interest row.
What is a good APR for a personal loan?
It depends on credit and term, but as a rough 2026 sense-check: excellent credit often lands under 9%, fair credit 12–20%, and anything above 25% deserves a hard look at alternatives. Your lender's disclosure is what counts.
Should I pay extra toward my loan?
Extra payments go straight to principal and cut total interest, with no downside on a fixed loan without prepayment penalties. Even $50 extra a month on a 5-year loan saves hundreds in interest.
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