Finance · Loan Calculator
LOAN
CALCULATOR
Calculate monthly payments, total interest, and full amortization for any loan — car, personal, student, or custom. Compare three loan scenarios side by side.
Car Loan
Personal Loan
Student Loan
Custom
Monthly Payment
$0
Principal + interest
Total Interest
$0
Over full loan term
Total Cost
$0
Principal + all interest
Loan Details
Loan Amount$25,000
$500$200k
$
Interest Rate6.5%
0.5%30%
%
Loan Term5 years
1 yr30 yrs
Extra Monthly Payment$0
$0$2,000
Principal vs Interest Over Time
Key Stats
Payoff Date—
Interest-to-Principal—
Interest Saved (extra)—
Time Saved (extra)—
Breakeven Month—
Eff. Annual Cost—
SCENARIO COMPARISON
3 Years
$0
Total: $0
Interest: $0
5 Years
$0
Total: $0
Interest: $0
7 Years
$0
Total: $0
Interest: $0
Amortization Schedule (Yearly)
| Year | Principal Paid | Interest Paid | Total Paid | Balance |
|---|
APR vs Interest Rate
APR (Annual Percentage Rate) includes fees and other costs beyond the interest rate. When comparing loans, always compare APR, not just the stated rate. A 6% loan with $1,000 in fees can be worse than a 6.5% loan with no fees.
Extra Payments
Even small extra payments dramatically reduce interest costs. On a $25k car loan at 6.5% for 5 years, paying an extra $100/month saves ~$400 in interest and pays off 7 months early. Early extra payments save the most.
Secured vs Unsecured
Car and home loans are secured (backed by collateral), so rates are lower. Personal loans are unsecured — rates are higher (typically 7–35%) because the lender has no collateral to seize if you default.
Credit Score Impact
A 100-point credit score difference can change your loan rate by 2–4%. On a $25k, 5-year loan, that's a difference of $1,500–$3,000 in total interest. Improving your score before applying saves significant money.
FAQ
What's a good interest rate for a car loan? ▾
As of 2024–2025, average new car loan rates are 6–8% for borrowers with good credit (670+). Excellent credit (750+) may qualify for 4–6%. Used car loans typically run 1–3% higher. Credit unions often offer rates 1–2% lower than banks.
Should I choose a longer or shorter loan term? ▾
Shorter terms mean higher monthly payments but much less total interest. Longer terms lower monthly payments but cost significantly more overall. A 3-year vs 5-year car loan on $25k at 6.5% means $230/month more but saves ~$1,200 in interest. If you can afford it, shorter wins.
How does making extra payments help? ▾
Mortgage and loan interest is front-loaded — early payments are mostly interest. Extra payments go directly to principal, reducing the balance on which future interest is calculated. This creates a compounding savings effect. Even $50–100 extra per month adds up to hundreds or thousands saved.
What's the 20/4/10 rule for car buying? ▾
Put 20% down, finance for no more than 4 years, and keep total vehicle expenses (payment + insurance) under 10% of gross monthly income. This prevents becoming "upside-down" on your loan and keeps transportation costs manageable.
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Frequently Asked Questions
What is the difference between APR and interest rate? ▾
The interest rate is the annual cost of borrowing the principal, expressed as a percentage. APR (Annual Percentage Rate) includes the interest rate plus all additional fees — origination fees, broker fees, and certain closing costs. APR gives a truer picture of the loan's total cost. Always compare APR when shopping for loans, not just the headline interest rate.
How does an amortisation schedule work? ▾
With a standard amortising loan, each fixed monthly payment covers the interest accrued that month plus a portion of the principal. In the early months, most of your payment goes to interest; in later months, more goes to principal. This calculator shows the full amortisation schedule so you can see exactly how much interest you're paying at each stage and how extra payments would shorten the loan.
Does making extra payments save money? ▾
Significantly. Extra principal payments reduce the balance on which interest accrues, so every extra dollar saves you more than a dollar over the life of the loan. On a 30-year mortgage, an extra $200/month from month 1 typically saves $50,000+ in interest and cuts the loan term by 5–7 years. Even occasional lump-sum payments have a meaningful impact. Check your loan agreement for prepayment penalties before doing this.
What credit score do I need for a good loan rate? ▾
Lenders typically offer their best rates to borrowers with credit scores of 740 or above. Scores 670–739 still qualify for good rates. Below 620 you may only qualify for subprime rates or need a co-signer. A difference of 100 points on your credit score can change your mortgage rate by 0.5–1.5%, which translates to tens of thousands of dollars over the loan's life.
What's the difference between a fixed and variable rate loan? ▾
Fixed rate loans keep the same interest rate for the entire term — your monthly payment never changes, which makes budgeting predictable. Variable rate loans have a rate that adjusts periodically based on a benchmark index (like SOFR). They often start lower than fixed rates but carry the risk of payments increasing. Fixed rates are generally better in rising rate environments; variable rates can save money if you expect rates to fall.
How to Use the Loan Calculator
Calculate monthly payments and total interest for any personal, auto, or student loan.
01
Enter the loan amount
The total amount you're borrowing — not the purchase price if there's a deposit involved.
02
Set the annual interest rate
Check your loan offer letter or lender's website. Personal loans typically range from 6–36% APR. Auto loans from 3–15%. Student loans from 4–7%.
03
Choose the loan term
Longer terms mean lower monthly payments but significantly more total interest paid. Shorter terms save money overall.
04
Review your monthly payment
This is the fixed amount due every month. Confirm it fits comfortably within your budget — financial advisors suggest no more than 15–20% of take-home pay on debt payments.
05
Check the total interest
This is the real cost of borrowing. On a $15,000 car loan at 9% for 5 years, you'd pay over $3,600 in interest on top of the principal.
06
Use the amortisation schedule
See exactly when you'll hit key milestones like 25%, 50%, and 75% paid off. Early payoff saves the most — you're avoiding future interest.
💡 Making one extra payment per year can cut years off your loan and save hundreds or thousands in interest, depending on the loan size and rate.