Planning a car loan, personal loan or any fixed-rate loan? Work out your exact monthly payment, total interest and total cost before you sign.
Loan Calculator
Fixed-rate loan, monthly payments. No fees included.
Assumes payments at the end of each month and a fixed rate for the whole term.
How the loan payment is calculated
The formula is Monthly payment = P ร r รท (1 โ (1 + r)โn), where P is the loan amount, r is the monthly interest rate (annual rate รท 12) and n is the number of payments. A $25,000 loan at 6.5% over 5 years costs $489.15 a month, $4,349.22 in interest and $29,349.22 in total.
What a 1% rate change does to a $25,000, 5-year loan
| Interest Rate | Monthly | Total Interest |
|---|---|---|
| 4.5% | $466.08 | $2,964.53 |
| 5.5% | $477.53 | $3,651.74 |
| 6.5% | $489.15 | $4,349.22 |
| 7.5% | $500.95 | $5,056.92 |
| 8.5% | $512.91 | $5,774.80 |
Frequently asked questions
Does a longer term lower my payment?
Yes, but it raises total interest. Stretching the same $25,000 loan at 6.5% from 5 to 7 years drops the payment to about $371 a month โ yet adds roughly $1,800 more interest.
Is this the same as a mortgage payment?
The maths is identical, but a mortgage payment usually adds property tax, home insurance and HOA. Use our Mortgage Calculator for the full monthly housing payment.
What if the rate is 0%?
Then the payment is simply the loan amount divided by the number of months โ no interest at all.