Free Loan Calculator

Monthly payment with origination fees, true APR, early payoff savings, side-by-side loan comparison, and full amortization — formula shown for every result.

How to Calculate Your Loan Payment

Use the calculator below or follow these steps to work it out manually. The formula takes under a minute once you have your numbers.

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Enter loan amountInput the total principal you're borrowing. For auto loans, this is the car price minus your down payment.
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Set rate & termEnter the annual interest rate. Choose your loan term — shorter terms cost less in total interest but have higher monthly payments.
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Apply the formulaM = P × [r(1+r)^n] ÷ [(1+r)^n − 1]. For $15k at 10% for 3 yrs: M = $484/month. Total interest: $1,430.
4
Check the true APRAdd any origination fee to see your real cost. A 3% fee on a 3-year loan raises effective APR by about 1.5–2 percentage points.
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Origination Fee (optional)
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Common for personal loans (1%–8%). Added to loan balance or deducted from proceeds.

Your lender quotes an interest rate — but origination fees and closing costs raise the true APR. This tab shows the real cost of your loan after all fees.

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Enter 0 if no origination fee.
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Processing, underwriting, closing fees, etc.

See exactly how much interest you save and how much earlier you pay off your loan by adding extra principal payments each month.

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Got two loan offers? Enter the details side by side to see which one actually costs less — including fees.

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Loan A
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Loan B
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Full payment-by-payment schedule showing principal vs. interest each month and your remaining balance.

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Loan Payment Formula
Monthly Payment (M)
M = P × r(1+r)^n
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(1+r)^n − 1
P = loan amount  |  r = monthly rate (annual ÷ 12)
n = total payments (years × 12)

Example: $15,000 @ 12%, 3 years
r = 0.12 ÷ 12 = 0.01
n = 3 × 12 = 36
M = $15,000 × [0.01 × (1.01)^36] / [(1.01)^36 − 1]
M = $498/month

How Loan Payments Are Calculated

Every installment loan — personal, auto, or student — uses the same amortization formula. Your monthly payment stays fixed, but the split between principal and interest shifts every month.

On a $15,000 loan at 12% for 3 years, you pay $498/month. In month 1, $150 is interest and $348 reduces your balance. By month 36, nearly the entire payment is principal — only $5 goes to interest.

This front-loading of interest is why paying extra early in the loan saves disproportionately more. Every extra dollar reduces the balance on which future interest is calculated.

Shorter term = less total interest, always. A $15,000 loan at 12% costs $1,430 in interest over 3 years — but $4,107 over 7 years. The rate is the same; the difference is entirely the term.
APR vs. Interest Rate — Real Example
Loan A — No Fee
14.0% APR
$15,000 · 3 years · $0 fee
Monthly: $513 · Total cost: $18,462
Loan B — With 5% Fee
12.0% rate → ~16.4% APR
$15,000 · 3 years · $750 fee
Monthly: $498 · Total cost: $18,678
Loan A looks more expensive by rate — but Loan B actually costs $216 more total due to the fee. APR reveals the truth.

APR vs. Interest Rate: What's the Real Cost?

Lenders are required by US law to disclose APR (Annual Percentage Rate), which includes the interest rate plus fees — making it a more accurate comparison tool than the stated rate alone.

  • Interest rate: The base cost of borrowing, expressed annually. Used to calculate your monthly payment.
  • APR: The interest rate plus origination fees, closing costs, and other charges, expressed as a single annual rate. The truest measure of cost.
  • Origination fee: Typically 1%–8% on personal loans, often deducted upfront from your proceeds. A 3% fee on a $15,000 loan = $450 you never receive.

Use the True APR tab above to enter your exact fees and see how they affect your real borrowing cost before you sign.

Personal, Auto & Student Loans — What to Expect

Rates, terms, and fees vary significantly by loan type. Here's what lenders typically offer in 2026.

Personal Loans
Rates: 8%–36% APR. Terms: 1–7 years. Origination fees: 0%–8%. No collateral required. Best for debt consolidation, home improvement, or large purchases. Credit score matters most.
Auto Loans
New car: 5%–9% APR. Used car: 7%–14% APR. Terms: 24–84 months. No origination fee typically. Secured by the vehicle — rates are lower, but you risk repossession if you default.
Student Loans
Federal: 5.5%–8.05% (2024–25). Private: 4%–17% APR. Terms: 10–25 years. Federal loans have income-driven repayment options and forgiveness programs that private loans don't offer.
Home Equity Loans
Rates: 7%–10% APR. Terms: 5–30 years. Secured by your home — much lower rates than personal loans, but you risk foreclosure. Tax-deductible interest if used for home improvements.

Frequently Asked Questions About Loans

Honest answers to the most common loan questions.

Loan payments use the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P = loan principal, r = monthly interest rate (annual rate ÷ 12), and n = total monthly payments (years × 12). For a $15,000 loan at 12% for 3 years: r = 0.01, n = 36, M = $498/month. Total interest = $1,930.
The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus fees like origination fees, expressed as a single annual percentage. A 12% rate with a 3% origination fee results in an APR of roughly 14%–15% on a 3-year term. Always compare APRs — not just stated rates — when shopping multiple lenders.
As of 2026, rates for personal loans range from about 8% to 36% APR. Excellent credit (720+) typically qualifies for 8%–14%. Good credit (680–719) is 14%–20%. Fair credit (580–679) is 20%–30%. Rates above 20% should prompt you to compare alternatives like credit union loans, 0% APR credit cards, or home equity loans (if you're a homeowner).
At 12% for 3 years: $332/month ($1,953 total interest). At 15% for 3 years: $347/month ($2,484 interest). At 10% for 5 years: $212/month ($2,748 interest — more total despite lower rate, because of longer term). At 20% for 3 years: $372/month ($3,380 interest). Shorter terms always minimize total interest paid.
At 10% for 5 years: $425/month ($5,496 total interest). At 12% for 5 years: $445/month ($6,676 interest). At 7% for 7 years: $300/month ($5,181 interest) — lower monthly payment, but you pay for 2 extra years. At 15% for 3 years: $694/month ($4,968 interest) — highest monthly but cheapest total.
Origination fees (1%–8%) are charged upfront and typically deducted from your loan proceeds. On a $15,000 loan with a 5% origination fee, you receive only $14,250 but make payments on $15,000 — raising your effective APR from the stated rate by 1.5–3 percentage points depending on the term. Shorter loan terms make the fee hurt more because you have less time to spread it out. Use the True APR tab to see the exact impact.
Extra payments go directly to principal, reducing the balance on which future interest is calculated. On a $15,000 loan at 12% over 3 years, paying $100 extra per month saves about $350 in interest and pays the loan off 6 months early. Check for prepayment penalties first — rare on personal loans but common on some auto loans and mortgages. Even a single lump-sum payment mid-loan can save meaningfully. Use the Early Payoff tab for your exact scenario.
Most major banks and online lenders require a minimum score of 580–600. Credit unions are often more flexible. Scores of 670+ are considered "good" and qualify for competitive rates. Scores of 720+ unlock the best available rates. Your debt-to-income ratio (ideally below 36%), income stability, and employment history also factor into approval and rate offered.

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How we keep this accurate: Loan payment calculations use the standard amortization formula used by US lenders. APR calculations follow the CFPB's definition of APR. Typical rate ranges are based on published data from major US lenders and the Federal Reserve's Consumer Credit report (G.19). This tool is for informational purposes only and is not financial advice — consult a licensed financial professional for your specific situation. Last reviewed May 2026. About CalcMeter →