Loan Calculator
What a personal or car loan really costs — month by month, and in total.
A personal loan, a car loan, any fixed-rate loan — here is what it will cost you each month, and in total.
How loan repayments are calculated
Personal and auto loans are usually amortizing installment loans. The payment stays the same every month, and each one pays that month's interest plus part of the balance. The calculator uses the same formula banks use: M = P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r is the monthly rate and n is the number of months.
Example
Borrowing $15,000 at 9.9% over 48 months costs about $379 a month, and roughly $3,200 in interest in total. Stretch the same loan to 72 months and the payment falls to about $277. The total interest, though, rises to almost $5,000.
APR vs interest rate
The APR (Annual Percentage Rate) includes the interest rate plus most compulsory fees, so it's the better number for comparing offers. In the UK, lenders must show a "representative APR", which at least 51% of accepted applicants receive. The rate you are personally offered may be higher.
How to pay less interest
- Choose the shortest term you can comfortably afford. A shorter term means a higher monthly payment but much less interest overall.
- Improve your credit score before you apply. Better scores get lower rates.
- Check for early repayment fees. Many loans let you overpay and save interest. In the UK, early settlement charges are capped by law.
Frequently asked questions
Can I enter the term in years?
Multiply the years by 12. For example, 5 years is 60 months.
Does this work for student loans?
For private, fixed-rate student loans, yes. Federal US student loans on income-driven plans, and UK student loans, work differently because repayments depend on your income.
Results are estimates for information only and are not a loan offer.