Loan Payment Calculator
Calculate your monthly loan payment, total cost, and total interest for auto loans, personal loans, student loans, or any fixed-rate installment loan.
How to Calculate Your Monthly Loan Payment
Whether you're financing a car, consolidating debt, or funding a major purchase, knowing your monthly payment before you sign anything is critical. Our loan payment calculator uses the standard amortization formula to give you accurate estimates for any type of installment loan.
Just enter the loan amount, annual interest rate, and loan term in months or years. The calculator will show your monthly payment, total interest paid, and a complete breakdown of how each payment splits between principal and interest over time.
Common Loan Types and Typical Rates in 2026
Interest rates vary dramatically depending on the type of loan, your credit score, and whether the loan is secured or unsecured:
| Loan Type | Typical APR | Common Term |
|---|---|---|
| New Auto Loan | 5.5% – 9.0% | 48–72 months |
| Used Auto Loan | 7.0% – 12.0% | 48–60 months |
| Personal Loan (Good Credit) | 8.0% – 15.0% | 12–60 months |
| Personal Loan (Fair Credit) | 15.0% – 25.0% | 12–36 months |
| Student Loan (Federal) | 5.5% – 7.5% | 10–25 years |
The Total Cost of Borrowing: It's More Than the Sticker Price
Many people focus on the monthly payment and ignore the total cost. Here's why that matters — a $25,000 car loan at 8% for 72 months has a monthly payment of $438, which feels manageable. But you'll pay a total of $31,536 — that's $6,536 in interest on top of the $25,000 you borrowed.
Shorter loan terms mean higher monthly payments but significantly less interest. Use the calculator to compare different terms side by side before committing.
Amortization: How Your Payments Change Over Time
In the early months of a loan, most of your payment goes toward interest. As you pay down the principal balance, the interest portion shrinks and more of your payment goes toward principal. This is called amortization.
For a $30,000 personal loan at 10% over 5 years, your first payment breaks down roughly as $250 interest / $395 principal. By the final year, it flips to about $35 interest / $610 principal.
Understanding amortization helps you see the impact of extra payments. Because early payments are interest-heavy, making extra payments in the first years of a loan saves you far more than making them later.
5 Ways to Get a Lower Interest Rate
- Improve your credit score — Raising your score from 680 to 740+ can drop your rate by 1-3 percentage points, saving thousands over the loan term.
- Shop multiple lenders — Rates can vary by 2%+ between lenders for the same borrower. Get at least 3-5 quotes.
- Choose a shorter term — Lenders offer lower rates on shorter loans because there's less risk.
- Offer collateral — Secured loans (auto, home equity) have lower rates than unsecured personal loans.
- Use a co-signer — If your credit isn't great, a co-signer with strong credit can help you qualify for better rates.
💡 Watch Out for Prepayment Penalties
Some loans charge a fee if you pay them off early, which can wipe out the interest savings from extra payments. Always check the loan agreement for prepayment penalty clauses before signing. Federal student loans and most auto loans don't have them, but some personal loans and subprime auto loans do. Use our Debt Payoff Calculator to model your repayment strategy.
Reviewed by the Wealth Growth Financial Review Board. Last updated June 2026. This calculator provides estimates only — actual loan terms vary by lender and credit profile.