Loan Calculator
Calculate payments for any loan—personal, auto, or mortgage. See how extra payments can save you thousands.
Scroll down to get your amortization schedule
How Loan Payments Work
Most loans use amortization—a fixed monthly payment that covers both principal (the amount borrowed) and interest (the cost of borrowing). Here's the key insight:
💡 Early vs Late Payments
In year 1 of a loan, most of your payment goes to interest.
In the final years, most goes to principal.
This is why extra payments early in the loan save the most money!
The Power of Extra Payments
Adding even a small extra payment each month can dramatically reduce your loan cost:
| $20,000 Loan at 8% | Monthly Payment | Time to Payoff | Total Interest |
|---|---|---|---|
| Standard (5 year) | $406 | 60 months | $4,332 |
| + $50 extra/month | $456 | 50 months | $3,540 |
| + $100 extra/month | $506 | 44 months | $2,920 |
Adding $100/month saves $1,412 in interest and pays off the loan 16 months early!
Common Loan Types
Personal Loans
Unsecured, fixed-rate loans for any purpose.
Typical rate: 8-20%
Term: 2-7 years
Auto Loans
Secured by the vehicle, lower rates than personal.
Typical rate: 5-12%
Term: 3-7 years
Mortgages
Secured by home, lowest rates, longest terms.
Typical rate: 6-8%
Term: 15-30 years
Frequently Asked Questions
What's the difference between APR and interest rate?
The interest rate is what you pay to borrow. The APR (Annual Percentage Rate)includes the interest rate plus fees, giving you the true cost of borrowing. Always compare APR, not just rates.
Should I choose a shorter or longer loan term?
Shorter term: Higher monthly payment, less total interest, build equity faster.
Longer term: Lower monthly payment, more flexibility, but pay more interest overall. Choose the shortest term you can comfortably afford.
Is it better to make extra payments or invest?
Compare your loan rate to expected investment returns. If your loan is at 7% and you expect 8-10% returns, invest. If your loan is at 15%+, pay it off first. The guaranteed "return" of paying off debt is often the smarter choice.