How to use the Loan Calculator
- Type the amount you want to borrow.
- Enter the annual interest rate (APR) quoted by the lender.
- Set the term in years and extra months.
- The monthly payment, total interest and yearly schedule update instantly.
How it works
Fixed-rate installment loans are amortized, meaning each payment covers that month's interest first and the rest reduces the balance:
Payment = P × r ÷ (1 − (1 + r)−n)Early payments are mostly interest; later payments are mostly principal. Paying extra toward principal shortens the loan and cuts total interest.
Frequently asked questions
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR also includes most lender fees, so it is the better number for comparing offers.
How can I lower my monthly payment?
Choose a longer term, borrow less, or improve your credit score to qualify for a lower rate. Note that a longer term usually increases total interest.
Does paying early save money?
Yes. Any extra payment applied to principal reduces the balance that accrues interest, so you pay less over the life of the loan — check that your lender has no prepayment penalty.