Loan Payment Calculator
Enter any loan amount, interest rate and term to see the monthly payment, total interest and full payoff cost — for personal loans, business loans or any amortizing debt.
How loan payments amortize
Amortization means each fixed payment covers that month's interest first, with the remainder reducing principal. Because interest is charged on the remaining balance, the interest share is largest at the start and shrinks with every payment. On a $25,000 loan at 11% over 5 years, the first payment includes about $229 of interest; the final payment includes barely $5.
Where P is the loan amount, r is the monthly rate (APR ÷ 12) and n is the number of monthly payments. This is the same formula behind mortgages and auto loans — the only difference is scale and term.
Term length is the quiet cost driver
Lenders often advertise longer terms as "lower payments," which is true per month and expensive in total. The same $25,000 loan at 11% costs about $544/month over 5 years with roughly $7,600 in total interest — but only $428/month over 7 years while interest climbs to nearly $11,000. Run both terms in the calculator and compare the "Total repaid" line before choosing.
Two practical rules: if you can afford the shorter term's payment comfortably (with margin for emergencies), take it. If not, take the longer term and plan voluntary extra payments — extra principal in the first year saves more interest than the same extra payment in the final year.
Frequently asked questions
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR bundles in most lender fees, so it's usually slightly higher — and it's the better number for comparing loan offers.
Do extra payments really help?
Yes. Because interest is charged on the outstanding balance, every extra dollar of principal immediately stops accruing interest. Extra payments early in the loan save the most.
What is a good personal loan rate?
For good credit in 2026, roughly 8%–15% APR is typical. Anything above 20% is credit-card territory and usually worth refinancing.