Loan Payment Calculator

Each month, interest is worked out on what you still owe: the yearly rate divided by 12. The rest of your payment goes to the loan itself. The payment stays the same every month, so as the loan gets smaller, less of each payment is interest and more goes to the loan. The last payment is often a little different, because the numbers rarely land exactly on zero.

In the example, of your first $601 payment, $188 is interest and $413 goes to the loan itself. In the first year you pay about $2,076 in interest; in the last year, about $285. Over the whole loan, about $17 of every $100 you pay is interest.

The “things worth knowing before you sign” button under your answer shows this year by year for your own loan.

For the same amount and the same rate, a longer loan means a smaller monthly payment, paid for longer, and more interest in total. For the $30,000 example at 7.5%:

• 2 years: $1,350 a month, about $2,400 in interest.
• 3 years: $933 a month, about $3,595 in interest.
• 4 years: $725 a month, about $4,818.
• 5 years: $601 a month, about $6,068.
• 6 years: $519 a month, about $7,347.
• 7 years: $460 a month, about $8,652.

From 3 to 7 years, the monthly payment falls by $473 and the interest grows by about $5,057: about $1,250 more for each extra year, and a little more each time. The Federal Trade Commission advises knowing your total cost, not just the monthly payment, and notes that lower monthly payments often require longer terms and higher interest rates.

Lenders may charge a higher rate for a longer loan. In the example, 7 years at 9% instead of 7.5% is $483 a month and about $10,544 in interest, $1,892 more. If you have a quote for each length, put it under “Rate for each length” in More options.

Which length suits you is your choice.

The calculator starts at 7.5%, a typical US car loan rate. For comparison, the US bank average for a 2-year personal loan was about 12%, close to the US average for a 24-month personal loan at banks (Federal Reserve, August 2026). That average is for 2-year loans, so your rate for a longer loan may differ. The rate you are offered depends on your credit and the lender, and can be much higher. For a $10,000 personal loan over 3 years, 15% means $347 a month and about $2,480 in interest; 20% means $372 a month and about $3,379.

Your offer may show an APR. On a loan, the APR is the interest rate plus some fees charged when the loan is made, so it can be higher than the interest rate alone (Consumer Financial Protection Bureau). In the UK, an advert’s “representative APR” is a rate the lender expects at least 51% of the loans from that advert to get, or better (Financial Conduct Authority), so some people are offered more. In the EU, a loan offer must show the annual percentage rate of charge, also called the APR, the total cost of the credit as a yearly rate (European Commission); some countries call it TAEG or TAE.

Some lenders take a one-time fee out of the loan, often called an origination fee. The monthly payment is worked out on the full amount you borrow, but you receive less.

That is why, in the example above, the fee pushes the true yearly rate above the rate on the offer. To receive the full $10,000 with a 5% fee, you would need to borrow about $10,526, which is $350 a month at 12% over 3 years.

Put the fee under “Upfront fee” in More options to see what reaches you and the true yearly rate.

If your loan allows it, paying more than the monthly payment shortens the loan and lowers the interest. In the example, a 5-year $30,000 loan paid at $933 a month, about the 3-year payment, is paid back with 36 full payments and a small final one, with about $3,596 in interest instead of $6,068.

Some loans charge a fee for paying early. The Consumer Financial Protection Bureau suggests checking your contract for a prepayment penalty before you sign; some states don’t allow them on certain loans.

Already have the loan? The Debt Payoff Calculator shows when you’d be done and what extra payments change.

A fixed-rate private student loan fits this estimate if its terms match the calculator’s assumptions. US federal student loans can be repaid on income-driven plans, where the monthly payment is based on your income and family size (Federal Student Aid). This calculator doesn’t model those plans.

Mortgages add property taxes, insurance and terms far longer than this calculator covers. This page is built for loans of up to 10 years and $150,000, and isn’t built for mortgages.

Try each question with your own numbers. In “What will this loan cost me?”, changing the length, in years or in months, shows how the total changes. In “How long will it take to pay back?”, try a little more each month and watch the time shrink. In “How long should I spread it?”, add a rate for each length if lenders quoted you more for longer.

Raise the rate by a few points to see what a higher offer would cost.

Buying a car? The Car Loan Calculator starts from the car price, a down payment and a trade-in, and covers owing more than the car is worth. If a trade-in is worth less than the loan still on it, that difference can be added to the new loan.

Could you save for it instead? The Savings Goal Calculator shows how long that would take. All our calculators are on the financial calculators page.

It assumes a fixed rate for the whole loan, the same payment at the end of every month, and no fees unless you add one. It doesn’t include insurance, taxes, dealer add-ons or late fees. Offered a variable rate? Try a rate a few points higher to see what a rise would do.

It doesn’t know your budget, so it can’t say whether a payment is affordable. It doesn’t know the rate a lender will offer you, your credit score, or the rules of your contract. It doesn’t model mortgages, rates that change over time, federal student loan plans that follow your income, or UK car finance such as hire purchase (HP) and personal contract purchase (PCP).

It shows what your numbers say. The decision stays with you.