Works for personal, auto, and student loans. Calculate your monthly payment and total interest — then see how much extra payments could save you.
Add an amount in "Extra Payment" to see how paying a little more each month cuts both your payoff time and total interest. All extra goes straight to principal.
PMT = P × [ r(1+r)n ] / [ (1+r)n − 1 ]
P = amount · r = monthly rate · n = months
A personal loan lets you borrow a fixed amount and repay it in equal monthly installments over a set term. Unlike a credit card, the rate and payment are usually fixed, so you know exactly what you owe each month and exactly when the debt will be gone. This calculator shows your monthly payment, total interest, and the full cost of borrowing before you commit.
The three numbers that decide everything are the amount you borrow, the annual interest rate (APR), and the term. Small changes to any one of them can move the total cost of the loan by thousands of dollars, which is why it is worth modeling different scenarios before you sign.
Personal loans use the standard amortization formula:
M = P × [ r(1+r)n ] / [ (1+r)n − 1 ]
Here P is the loan amount, r is the monthly interest rate (APR ÷ 12), and n is the number of monthly payments. Every payment is the same size, but early payments are mostly interest and later payments are mostly principal, because interest is charged on the shrinking balance.
Borrow $15,000 over 5 years (60 months) at an 11% APR:
| Figure | Value |
|---|---|
| Monthly payment | $326 |
| Total paid over 5 years | $19,572 |
| Total interest | $4,572 |
The interest adds about 30% to the amount you borrowed. Shortening the term to 3 years raises the monthly payment to roughly $491 but cuts total interest to about $2,676 — you pay more each month but far less overall.
Your credit score is the biggest driver of the rate you are offered. Borrowers with excellent credit may qualify for single-digit APRs, while those with fair credit can be quoted rates several times higher on the same loan.
Longer terms lower the monthly payment but increase total interest, because you borrow the money for longer. Shorter terms cost more per month but far less overall.
Secured loans backed by collateral usually carry lower rates than unsecured personal loans, because the lender takes on less risk. The trade-off is that you can lose the collateral if you default.
Estimates are for educational purposes only and are not financial advice. Actual loan terms vary by lender and creditworthiness.