About the Loan Calculator
Whether it's a car, a personal loan, or financing a large purchase, a fixed-rate loan is repaid in equal installments over a set term. Early payments go mostly toward interest, while later payments chip away more at the principal. This calculator shows your regular payment, the total you'll repay, and how much of that is interest.
How it’s calculated
Payment = P · [ r(1+r)^n ] / [ (1+r)^n − 1 ], where P is the loan amount, r is the periodic interest rate (annual rate ÷ payments per year), and n is the total number of payments. Total interest = (payment × n) − P.
Example calculation
A $25,000 auto loan at 7% APR over 5 years (60 monthly payments) has a monthly payment of about $495. You'd repay roughly $29,702 in total, of which about $4,702 is interest.
Frequently asked questions
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR (annual percentage rate) also includes certain fees, so it reflects the fuller cost of the loan. For a fee-free loan, the two are the same.
Does paying more frequently save money?
Yes, slightly. More frequent payments (e.g. biweekly instead of monthly) reduce the average balance the interest is charged on, so you pay a little less interest and finish sooner.
How can I pay off a loan faster?
Making extra payments toward the principal, or paying more than the minimum, reduces the balance faster and cuts total interest. Even small additional amounts add up meaningfully over the life of a loan.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.