Loan Calculator
Auto loan, personal loan, or any installment loan — get the monthly payment, total interest, and a full amortization schedule in seconds.
Loan details
Amortization schedule (yearly)
| Year | Interest paid | Principal paid | Balance |
|---|---|---|---|
| Enter your details and click Calculate. | |||
How loan payments are calculated
Most auto and personal loans are amortizing installment loans: you borrow a lump sum and repay it in fixed monthly payments over a set term. Each payment is split between interest (charged on the remaining balance) and principal (reducing the balance). The payment is computed with the standard amortization formula:
where P is the amount borrowed, r the monthly interest rate, and n the number of payments. Because interest is charged on the shrinking balance, early payments are interest-heavy and later payments are mostly principal — visible in the schedule above.
Term length: the hidden cost
Dealers love long terms because the payment looks small, but every extra year adds interest and keeps you "underwater" (owing more than the car is worth) longer. As a rule of thumb, keep auto loans to 5 years or less and personal loans as short as your budget allows. If you can afford extra principal payments, they go straight at the balance and shorten the loan with no penalty on most loans — just confirm yours has no prepayment fee.
Loan FAQs
How do I calculate a loan payment?
Use M = P × r(1+r)^n / ((1+r)^n − 1), or just enter your numbers above — the calculator applies the same formula banks use.
What is a good interest rate for a car loan?
It depends on credit score and market conditions. Excellent-credit borrowers often beat the national average by several points. A 2-point difference on a 5-year $30,000 loan costs about $1,600 in extra interest, so comparing lenders pays.
Is a longer loan term better because the payment is lower?
The payment drops but total interest rises sharply, and you stay underwater longer. Shorter terms usually win, especially on depreciating assets like cars.
Should I pay extra toward my loan principal?
Extra principal payments shorten the loan and cut total interest, with no penalty on most auto and personal loans. Even $50 extra a month makes a visible difference.