This free loan calculator estimates the monthly payment on any fixed-rate amortizing loan, from car loans to personal and student loans. Enter the amount, APR, and term to see the payment, total interest, and full cost of the loan, plus how the first payment splits between interest and principal. Figures are estimates for planning, not a lender quote.
How to use this loan calculator
- Enter loan amountAdd the total you plan to borrow.
- Add rate and termEnter the APR and loan years.
- Read the paymentSee the monthly payment instantly.
- Check total costReview total interest and payoff cost.
The formula behind it
Monthly payment uses M = P × r(1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly rate (APR ÷ 12), and n is the number of monthly payments.
Example: A $25,000 car loan at 7.5% APR for 5 years has a monthly payment of about $500.95. Over 60 payments, total interest is about $5,057, so the total cost is about $30,057.
Sample payments on a $25,000 5-year loan
| Rate | Estimated monthly payment |
|---|---|
| 5.0% APR | $471.78/mo |
| 6.0% APR | $483.32/mo |
| 7.5% APR | $500.95/mo |
| 9.0% APR | $518.96/mo |
| 11.0% APR | $543.56/mo |
US loan terms people ask about
Car loans commonly run 36 to 72 months. Shorter terms cost less interest but raise the monthly payment.
APR includes lender fees, so it can be higher than the note rate. This calculator uses the rate you enter as the full borrowing rate.
Early payments are mostly interest. The first-payment split shows how much principal you actually reduce at the start.
Extra principal payments shorten the schedule and cut total interest, but they are not modeled here.
Frequently asked questions
What is the monthly payment on a $25,000 car loan at 7.5% for 5 years?
About $500.95 per month, for a total cost of roughly $30,057 including interest.
How is loan interest calculated each month?
Each month, interest is charged on the remaining balance. The rest of the payment reduces principal.
Does this work for car, personal, and student loans?
Yes. Any fixed-rate amortizing loan uses the same payment formula. Enter its amount, APR, and term.
Is a longer loan term better?
A longer term lowers the monthly payment but raises total interest paid over the life of the loan.
Is this loan calculator a loan offer?
No. It is an educational estimate. Lenders provide binding quotes after full underwriting.
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Related: mortgage calculator, paycheck calculator, and the Calculators hub.
Official consumer loan guidance is available from CFPB - Auto Loans.