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Loan Calculator: Monthly Payment and Total Interest
Find the monthly payment on a car loan, personal loan or student loan, see the full payoff schedule, and check how much an extra payment saves.
How loan payments work
Most car, personal and student loans are fixed-rate amortizing loans: you pay the same amount every month, and each payment covers that month's interest first, with the rest reducing your balance. As the balance falls, less goes to interest and more to principal.
The payment formula is M = P × r / (1 − (1 + r)−n), where P is the amount borrowed, r is the APR divided by 12 and n is the number of months. A $25,000 loan at 7.5% for 5 years (60 months) costs about $501 a month and about $5,060 in total interest.
Ways to pay less interest
- Choose a shorter term. Payments go up, but total interest drops sharply.
- Pay extra each month. Every extra dollar goes straight to principal. Try the extra payment box above.
- Improve your rate. A better credit score or a co-signer can cut your APR. Refinancing later is also an option if rates fall.
Frequently asked questions
What is a good interest rate on a personal loan?
Rates depend mostly on your credit score. Borrowers with excellent credit often get under 12% APR, while fair credit can mean 20% or more. Compare offers using the APR, which includes fees.
Is it better to take a shorter loan term?
A shorter term means higher monthly payments but much less total interest. Use the calculator to compare, for example, 36 and 60 months.