Loan Calculator
Work out exactly what any amortized loan will cost you. Enter the amount borrowed, interest rate, and term to see your fixed monthly payment, the total interest you will pay over the life of the loan, and the date you will be debt-free.
The yearly amortization table shows how each payment splits between interest and principal — useful when comparing lender offers or deciding whether to make extra payments.
Monthly payment
$525.05
- Total interest paid
- $6,502.79
- Total of payments
- $31,502.79
- Debt-free by
- August 2031
Interest is 26.0% of the amount borrowed.
| Year | Principal paid | Interest paid | Remaining balance |
|---|---|---|---|
| 1 | $4,101.08 | $2,199.48 | $20,898.92 |
| 2 | $4,508.10 | $1,792.46 | $16,390.83 |
| 3 | $4,955.52 | $1,345.04 | $11,435.31 |
| 4 | $5,447.34 | $853.22 | $5,987.97 |
| 5 | $5,987.97 | $312.59 | $0.00 |
How the Loan Calculator works
The calculation follows the standard method used across the US — no shortcuts, no hidden assumptions. Here is exactly what happens behind the scenes:
Formula
Payment = P × i / (1 − (1 + i)^−n)
- P is the loan principal.
- i is the periodic interest rate (annual rate divided by the number of payments per year).
- n is the total number of payments over the loan term.
Frequently Asked Questions
What is the difference between APR and interest rate?
The interest rate determines your payment. The APR includes the rate plus lender fees expressed as an annualized percentage, which makes it better for comparing offers with different fee structures.
How can I pay off my loan faster?
Add extra money directly to principal each month. Because interest is charged only on the remaining balance, even $50–$100 extra per month can cut months or years off your term. Ask your servicer to apply extra payments to principal, not future payments.
Do longer loan terms always cost more?
Longer terms lower your monthly payment but increase total interest because you borrow for more time at a compounding cost. Compare terms above to see the trade-off in dollars.
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