EXAMPLE
$20,000 at 6% for 5 years comes to about $387/month.
Enter an amount and term to see results.
Ad — 728×90
How this calculator works
Whether it is a car loan or a personal loan, the sticker price tells you what you are borrowing — not what you will actually pay once interest is added over years of payments. This calculator turns a loan amount, interest rate, and term into a monthly payment and total cost.
THE MATH BEHIND IT
Monthly payment: (Loan × monthly rate) ÷ (1 − (1 + monthly rate)^−months)
Total paid: Monthly payment × number of months
Total interest: Total paid − Loan amount
A real example
A $20,000 car loan at 6% annual interest over 5 years:
Monthly payment
$386.66
Total paid over 5 years
$386.66 × 60 =$23,199.60
Total interest
$23,199.60 − $20,000 =$3,199.60
Common questions
A longer loan term lowers the monthly payment but increases the number of months interest accrues on the remaining balance, which increases total interest paid. A shorter term raises the monthly payment and lowers total interest paid.
The interest rate reflects only the cost of borrowing the principal. APR includes the interest rate plus certain lender fees, expressed as a single annual percentage.
Paying down principal ahead of schedule reduces the remaining balance sooner, which reduces the amount of interest that accrues in later months. Some loans include a prepayment penalty clause, stated in the loan agreement.