Loan Calculator

Calculate the monthly repayment on any fixed-rate loan and see exactly how much goes to interest versus principal.

How the Loan Calculator works

unused

Example calculation

unused

Tips for using the Loan Calculator

• Always compare loans by APR, not the nominal rate. APR folds in origination fees, so a 9% note with a 5% fee can cost you closer to 12.5% in real terms - the APR is the number that lets you compare two offers fairly.
• Ask whether the origination fee is deducted from your proceeds or added to the balance. If a 5% fee is taken out of an $8,000 loan, you get $7,600 but still repay $8,000, so to actually net $8,000 you must borrow about $8,421 (8,000 / 0.95).
• Run the same loan at 3, 5, and 7 years before signing. Stretching the term cuts the monthly payment but can double or triple total interest - confirm you actually need the lower payment rather than just wanting it.
• Check for prepayment penalties. Most US personal loans have none, which means extra principal payments go straight to reducing your balance - on a $15,000 loan at 11.5% over 5 years, paying an extra $50 a month saves about $856 in interest and clears it 10 months early.
• For debt consolidation, the loan only saves money if its APR is meaningfully below the weighted-average APR of the debts you are paying off, and you do not run the old cards back up.
• Get pre-qualified with a soft credit pull before a hard application. Rates are priced off your credit tier, and a soft pull shows your real rate without dinging your score.
• Watch the difference between fixed and variable rates. This tool assumes a fixed rate; a variable-rate loan can reprice, so only trust a fixed quote for the full-term math here.
• Avoid loans that quote only a monthly payment with no APR or term. Back into the rate yourself from the amount, payment, and term (Excel: =RATE(n, payment, -P)*12) - a hidden APR is almost always a high one.
• If you are simply choosing how much loan you can carry, size the payment first against your budget and the lender's debt-to-income limits before locking an amount.
• Re-run the math the moment any single input changes. Because interest compounds on the declining balance, a half-point rate change or one extra year of term shifts the total cost more than most people expect.

Unsecured vs secured loans (and why the rate differs)

The single biggest driver of your rate on a general-purpose loan is whether it is secured or unsecured. A secured loan is backed by collateral the lender can seize if you default; an unsecured loan is backed only by your promise to repay, so the lender prices in more risk.

This calculator works for both, but the typical terms differ sharply:

Feature	Unsecured personal loan	Secured loan
Collateral	None	Car, home equity, savings, etc.
Typical APR	Higher (risk-priced)	Lower
Typical term	2-7 years	Often longer
Approval speed	Fast, often same-day	Slower (appraisal/title)
Risk to you	Credit damage	Losing the asset

If you want the lowest possible payment and own an asset, a secured option such as a home equity loan usually beats an unsecured personal loan on rate. If you value speed and do not want to risk an asset, the unsecured route this page models is the safer structure even at a higher APR.

APR vs nominal rate: the number that actually matters

The nominal (note) rate is the interest charged on your balance; the APR is the nominal rate plus fees, and it is the true cost of borrowing. US lenders are required to disclose APR precisely so you can compare offers on equal footing.

The gap comes mostly from origination fees, which run roughly 1% to 8% on personal loans. Walk through Example 2 above: an $8,000 loan at a 9% note rate with a 5% origination fee. The fee deducts $400, so you receive $7,600 but still repay the full $8,000 schedule. Because you are paying interest on money you never got, the effective APR climbs to about 12.5%.

The rule: if two lenders quote the same monthly payment, the one with the lower fee is cheaper, and the APR will reveal it. Never compare a fee-heavy loan to a no-fee loan on note rate alone. When in doubt, divide total cost by what you actually received - not by the face amount of the loan.

Debt-consolidation math: when it actually saves money

Consolidation only wins when the loan's APR is below the blended rate of the debt it replaces and you keep the same or higher monthly payment. The danger is stretching the term so far that a lower rate still costs more in total.

Example: you owe $12,000 across credit cards at a 22% APR and pay $400 a month. At that pace it takes about 44 months and costs roughly $5,581 in interest. Refinance that $12,000 into a 12% personal loan over 36 months and the payment is $398.57 - essentially the same $400 - but total interest drops to $2,348.58. That is about $3,232 saved for the same monthly outlay.

The trap: take the same 12% loan over 60 months and the payment falls to $266.93, but interest rises to $4,016. The lower rate helped, yet the longer term gave most of the savings back. Use the debt payoff calculator to model the cards, then compare against the loan here. Confirm the rate is genuinely lower, keep the term tight, and close or freeze the old accounts so the balances do not creep back.

How to do it by hand or in Excel

You can reproduce this calculator with one spreadsheet function. Use PMT for the payment, and combine it with simple arithmetic for the totals.

For the monthly payment, the formula is:

=PMT(rate/12, years*12, -loan_amount)

So a $15,000 loan at 11.5% over 5 years is =PMT(0.115/12, 60, -15000), which returns $329.89. The loan amount is entered as a negative because, in spreadsheet convention, money you receive is a cash inflow.

To get total interest, multiply and subtract:

• Total paid: =PMT(rate/12, n, -P) * n
• Total interest: =(PMT(rate/12, n, -P) * n) - P

To solve a different unknown, swap functions: =RATE(n, payment, -P)*12 backs into the annual rate from a known payment, and =NPER(rate/12, payment, -P) tells you how many months a given payment takes. By hand, compute (1+i)ⁿ first, then apply the main formula - that single power term is where most manual errors happen.

Is your rate good? Credit-tier benchmarks

Personal-loan APRs are priced almost entirely off your credit tier, so the only honest benchmark is what borrowers at your score actually get. Rates move with the broader rate environment, so treat the ranges below as relative tiers rather than fixed numbers.

Credit tier	Typical APR position	What to expect
Excellent (760+)	Lowest available	Best rates, low or no origination fee
Good (700-759)	Below average	Competitive offers, small fees
Fair (640-699)	Above average	Higher APR, larger origination fees
Poor (below 640)	Highest / may be declined	Steep APR; secured option often better

Two checks tell you if an offer is fair: compare it to at least three pre-qualified quotes, and confirm the APR (not note rate) sits in or below your tier. If your score is the problem, a few months of on-time payments and lower utilization can move you a tier and save more than any negotiation. The debt-to-income ratio calculator shows the other half of approval - lenders look at DTI alongside score.

Using this for any loan type

Because the math is universal, you can model almost any fixed-rate, fixed-term loan here by changing three inputs. Any loan with equal monthly payments and a set rate fits the same amortization formula.

• Medical or dental financing: enter the balance, the promotional or post-promo APR, and the term. Watch for deferred-interest plans, which are not true fixed loans.
• Wedding, moving, or large-purchase loans: standard unsecured terms, 2-5 years - enter as-is.
• Small personal or family loans: set the agreed rate and term to produce a fair payment schedule.
• Buy-now-pay-later installments: if there is a stated APR and term, the math holds.

For asset-specific loans, use the purpose-built tools instead, since they handle quirks this general engine does not - down payments, PMI, and escrow in the mortgage calculator, or trade-ins and sales tax in the auto loan calculator. For everything else fixed and unsecured, this page is the right tool.

What this calculator covers (and what to use instead)

This page is built for the generic fixed-rate, fixed-term installment loan - mostly unsecured personal and debt-consolidation loans. The table below shows where it is the right tool and where a purpose-built calculator handles the loan better.

Loan type	Use this calculator?	Why / better tool
Personal / signature loan	Yes	Exactly what this models - fixed rate, fixed term
Debt-consolidation loan	Yes	Models the new loan; pair with the debt payoff calculator for the old debt
Medical, dental, wedding, moving	Yes	Standard fixed installment math, just enter APR and term
Buy-now-pay-later (stated APR)	Yes	Works if there is a real APR and fixed term
Mortgage / refinance	No	Needs PMI, escrow, taxes - use the mortgage calculator
Auto loan	No	Needs trade-in and sales tax - use the auto loan calculator
Home equity loan	No	Secured math differs - use the home equity loan calculator
0% APR loan	Yes	Falls back to Payment = P / n automatically

If your loan has a single fixed rate and a fixed number of equal payments, this calculator is accurate to the penny. The moment a loan adds a variable rate, deferred interest, or asset-specific fees, switch to the matching tool.

Common mistakes to avoid

Most loan-math errors come from comparing the wrong numbers or ignoring fees. These are the mistakes that cost real money:

• Comparing note rates instead of APRs. A lower note rate with a fat origination fee can be the more expensive loan. Always compare APR to APR.
• Forgetting the origination fee reduces your cash. If you need exactly $8,000 and the fee is 5%, you must borrow about $8,421 to net $8,000.
• Chasing the lowest monthly payment. A longer term lowers the payment but raises total interest - the home-improvement example above proves the lowest APR can still be the costliest loan.
• Assuming a variable rate stays put. This tool models fixed loans; a variable rate can climb and break the projection.
• Consolidating, then re-borrowing. Paying cards off with a loan only helps if you stop charging on the cards.
• Skipping pre-qualification. Applying cold triggers a hard pull and may surprise you with a higher tier rate. Soft-pull first.

Related on this site

How much loan can I afford? · Debt payoff calculator · Simple interest calculator · Auto loan calculator · Credit card payoff calculator · How loan interest works

For a related deep dive, see CFPB consumer resources.

Loan Calculator — frequently asked questions

What is APR?

The yearly cost of borrowing including interest. This tool treats it as a nominal annual rate compounded monthly.

Does paying extra help?

Yes — anything above the scheduled payment reduces principal, shortening the term and total interest.

Does this work for any loan type?

Yes — personal, wedding, medical, debt-consolidation or any fixed-rate installment loan with equal monthly payments.

Is APR the same as interest rate?

APR includes interest plus some fees, so it is usually slightly higher than the nominal rate.

What is the difference between a secured and an unsecured loan?

A secured loan is backed by collateral the lender can take if you default (such as a car, home equity, or savings); an unsecured loan is backed only by your promise to repay. Because the lender takes on more risk with no collateral, unsecured loans carry higher APRs but approve faster and put no specific asset on the line. This calculator handles both - just enter the rate you were quoted.

Why is my APR higher than the interest rate I was quoted?

Your APR is higher because it includes the origination fee, while the note (nominal) rate does not. For example, an $8,000 loan at a 9% note rate with a 5% origination fee deducts $400 up front, so you receive only $7,600 but still repay the full $8,000 schedule - pushing your effective APR to about 12.5%. APR is the legally required, all-in cost figure, so it is the only fair number to compare two offers.

How does an origination fee affect what I actually receive?

An origination fee is usually deducted from your loan proceeds, so you get less cash than the loan amount but repay the full balance. On an $8,000 loan with a 5% fee, $400 comes off the top and you receive $7,600. To net a specific amount, gross up the loan: to actually get $8,000 in hand at a 5% fee, you must borrow about $8,421, calculated as 8,000 divided by 0.95.

When does a debt-consolidation loan actually save money?

A consolidation loan saves money only when its APR is meaningfully below the blended rate of the debt it replaces and you keep the monthly payment the same or higher. Refinancing $12,000 of 22% credit-card debt (about $5,581 in interest at $400/month) into a 12% loan over 36 months drops interest to $2,348.58 - roughly $3,232 saved for the same $400 payment. Stretch that same loan to 60 months, though, and interest climbs back to about $4,016.

How much does adding a year to the term increase my total cost?

Stretching the term lowers your monthly payment but increases total interest, often sharply. A $10,000 loan at 10% over 3 years costs $322.67 a month and $1,616.19 in interest; the same loan over 5 years drops the payment to $212.47 but raises interest to $2,748.23. You pay about $1,132 more for the lower payment, so only extend the term if your budget genuinely needs it.

What credit score do I need to get the best personal-loan rate?

The lowest APRs generally go to borrowers with excellent credit, roughly 760 and above, who also tend to get low or no origination fees. Scores of 700-759 (good) see competitive offers, 640-699 (fair) face higher APRs and bigger fees, and below 640 (poor) often means steep rates or a denial. Because rates are tiered, raising your score even one tier can save more than any negotiation.

How do I calculate a loan payment in Excel or Google Sheets?

Use the PMT function: =PMT(rate/12, years*12, -loan_amount). For a $15,000 loan at 11.5% over 5 years, =PMT(0.115/12, 60, -15000) returns $329.89. Enter the loan amount as a negative number because spreadsheets treat money you receive as a cash inflow. For total interest, use =(PMT(rate/12, n, -P) * n) - P.

Can this calculator handle a 0% APR loan?

Yes - at 0% APR the tool simply divides the loan amount by the number of months, since there is no interest to compound. A $10,000 loan at 0% over 24 months is $416.67 a month with zero interest. Be cautious with 0% promotional offers that carry deferred interest, because those can retroactively add interest if you miss the payoff window and are not true fixed-rate loans.

Will paying extra each month save me money on a personal loan?

Yes, as long as your loan has no prepayment penalty - and most US personal loans do not. Extra payments go straight to principal, shrinking the balance interest is charged on. On a $15,000 loan at 11.5% over 5 years, paying an extra $50 a month cuts total interest from $4,793.35 to about $3,938 and clears the loan 10 months early. Confirm there is no prepayment penalty before relying on this.

What is the difference between a fixed-rate and a variable-rate loan?

A fixed-rate loan keeps the same interest rate and payment for the entire term, while a variable-rate loan can reprice as benchmark rates move, changing your payment. This calculator assumes a fixed rate, so its full-term totals are reliable only for a fixed quote. If your offer is variable, the projection here shows a snapshot at today's rate, not a guaranteed cost.

How is a personal loan different from using a credit card?

A personal loan gives you a lump sum at a fixed rate with a fixed payoff date, while a credit card is revolving debt with a variable rate and no required end date. Personal loans usually carry lower APRs than cards and force discipline through a set schedule, which is why they are common for consolidation. Cards charge interest on a balance you can keep adding to, so debt can linger far longer.

What monthly payment should I expect on a $20,000 personal loan?

A $20,000 loan at 8% APR over 5 years costs about $405.53 a month, with roughly $4,331.67 in total interest. Your actual payment depends on your APR (driven by credit tier) and term - a higher rate or shorter term raises the monthly figure, while a longer term lowers it but increases total interest. Enter your own quoted rate and term to see your exact number.

Can I use this calculator for medical, wedding, or moving loans?

Yes - any loan with a fixed rate, a fixed term, and equal monthly payments fits this calculator exactly. Enter the balance, the quoted APR, and the term in years, and the math is identical whether the loan is labeled medical, dental, wedding, or moving. The one exception is deferred-interest medical financing, which is not a true fixed loan and can add back interest if not paid in full on time.

Should I use this calculator or the mortgage or auto loan calculator?

Use this calculator for general-purpose, unsecured fixed loans like personal and consolidation loans; use a purpose-built tool when the loan has asset-specific features. A mortgage needs PMI, escrow, and property taxes, so use the mortgage calculator, and an auto loan needs trade-in value and sales tax, so use the auto loan calculator. For a home equity loan, the home equity loan calculator handles the secured-loan specifics this general engine does not.

How do I compare two loan offers fairly?

Compare them on APR, not the note rate, because APR includes origination fees and is the true cost of borrowing. If two lenders quote the same monthly payment, the one with the lower fee - and therefore lower APR - is cheaper. Get pre-qualified with soft credit pulls from at least three lenders so you see real, comparable rates without hard inquiries denting your score.

Guides & articles

• How Does Loan Interest Work?
• Does a Debt Consolidation Loan Actually Save You Money?
• How to Calculate Any Loan Payment (by Hand, Excel, or Calculator)

Related calculators

Mortgage Calculator · Auto Loan Calculator · Student Loan Calculator · Home Equity Loan Calculator · Business Loan Calculator · Boat Loan Calculator