Loan Repayment Calculator
Work out your monthly payment on a personal loan, auto loan, or debt consolidation — and see how paying a little extra each month saves interest.
Your scheduled monthly payment
$415.17
You'll pay $415.17 per month for 5 years. Over the life of the loan you'll pay $4,910.03 in interest on top of the $20,000.00 you borrowed.
Balance and interest over time
Year-by-year breakdown
| Year | Payments | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $4,982.01 | $1,665.40 | $3,316.60 | $16,683.40 |
| 2 | $4,982.01 | $1,354.28 | $3,627.72 | $13,055.68 |
| 3 | $4,982.01 | $1,013.98 | $3,968.03 | $9,087.65 |
| 4 | $4,982.01 | $641.75 | $4,340.25 | $4,747.40 |
| 5 | $4,982.01 | $234.61 | $4,747.40 | $0.00 |
Formula
A standard amortising loan is calculated as
M = P × r(1+r)n / ((1+r)n − 1),
where P is the loan amount, r is the monthly rate
(annual rate divided by 12), and n is the term in months. When the rate
is zero, monthly payment is simply M = P / n.
Each month, interest is charged on the remaining balance and the rest of the payment
reduces the principal — so early payments are mostly interest, and later payments are
mostly principal.
When this calculator helps
Reach for this calculator any time you are sizing up a personal loan, an auto loan, or a debt consolidation plan and you want to know the real monthly payment before you sign. It takes the amount you borrow, the interest rate, and the term, and returns the monthly payment along with the total you will have paid by the time the loan is done.
It shines at the shopping stage. When competing lenders quote different rates and terms, running each one shows which loan actually costs less over its full life — not just which has the lower monthly payment. That matters in the US, where personal and auto loans are quoted as an APR and the rate you are offered depends heavily on your credit profile.
How to read your result
You get three numbers: the monthly payment, the total repaid, and the total interest. The monthly payment is what you owe each month; the total repaid is every payment summed; the total interest is that sum minus the principal — the actual cost of borrowing.
Rate and term pull against each other. Stretching the term lowers the monthly payment, which feels good, but you make more payments and rack up more interest, so the total cost goes up. Shortening the term costs more each month but far less overall. Let the total interest figure guide you rather than fixating on the smallest monthly payment, especially on auto loans where long 72- or 84-month terms are now common.
A worked example
Say you borrow $20,000 for a car over 5 years at an APR of 9%. The monthly payment comes to about $415, you repay roughly $24,910 in total, and the interest adds up to around $4,910. Extend the same loan to 7 years and the monthly payment falls to about $322 — lighter each month, but you would repay close to $27,050, handing the lender roughly $2,100 more in interest for the longer term.
Common mistakes to avoid
The priciest loan mistakes usually come from watching the wrong number or overlooking what the rate leaves out.
- Comparing monthly payments instead of total cost — a smaller payment often just signals a longer term and more interest paid.
- Shopping on the interest rate alone instead of the APR, which folds in fees and is the number meant for apples-to-apples comparison.
- Forgetting origination fees, GAP insurance, dealer add-ons, and taxes, none of which are in the principal you enter here.
- Stretching the term to lower the monthly payment, then quietly paying hundreds or thousands more in interest over the life of the loan.
How US APR and your FICO score work
On personal and auto loans, lenders disclose an APR under the Truth in Lending Act, which combines the interest rate with most fees so you can compare offers on equal footing. But the APR you are quoted is not one-size-fits-all — it is priced off your credit, and your FICO score is the biggest lever. A borrower in the top tier might be offered single-digit rates, while someone with thin or damaged credit can be quoted two or three times as much for the identical loan.
That is why prequalifying with a soft credit pull before you formally apply is worth doing: it shows the rate you will actually get without dinging your score. Enter that personalized APR here as your working rate. The calculator applies it as a flat periodic rate to the balance, so for loans with large upfront fees the true cost can differ a little from the figure shown — always confirm against the lender's own Truth in Lending disclosure.
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Frequently asked questions
What's the difference between APR and the interest rate I enter here?▾
APR (Annual Percentage Rate) is the standardized rate disclosed under the federal Truth in Lending Act — it bundles the interest rate with most fees so you can compare offers on equal footing. The rate this calculator uses is a flat periodic interest rate applied to the balance each month. For a fee-free loan the two match closely; for a loan with origination fees the APR will be higher. Use the lender's stated APR as a working figure unless you know the true periodic rate.
Can I make extra payments to pay off the loan sooner?▾
Yes — that's what the 'Extra monthly payment' field models. Federal CFPB rules ban prepayment penalties on most consumer loans originated since 2014, but some auto loans and older personal loans may still charge them. Check your loan agreement before committing to a faster payoff plan.
Does this calculator account for origination fees, taxes, or insurance?▾
No. Enter just the principal you're borrowing and the headline interest rate. Origination fees, GAP insurance on auto loans, taxes, and other charges should be assessed separately when comparing offers.
How does this affect my credit score?▾
Taking out a new loan typically dings your score short-term (hard inquiry, new account) but improves it over the medium term as you build payment history. Paying off early is good for your credit utilization but ends a positive tradeline — net effect is usually small. This calculator does not model credit-score effects.
What if I miss a payment?▾
Missed payments trigger fees and harm your credit report (typically reported once 30+ days late). If you're struggling, contact the lender about hardship programs, then consider free non-profit credit counseling (NFCC.org). This calculator assumes the schedule runs to completion.