UtilibyWritten by the Utiliby editorial team · Last updated October 23, 2026 · Rules and formulas reviewed October 2026
What this free loan calculator does
A loan calculator answers the first questions every borrower asks: what will I pay each month, how much interest will it cost, and when will I be debt free. This free online loan payment calculator handles any fixed-rate loan with equal monthly payments, including car loans, personal loans, student loans, home improvement loans and the principal-and-interest part of a mortgage.
It goes further than a single payment figure. You get a clear breakdown of principal and interest, a chart of the balance falling over time, a yearly or payment-by-payment amortization schedule you can download, and a live test of extra payments or accelerated bi-weekly payments. A comparison tab sets different loan terms side by side, and an affordability tab works backwards from the monthly payment you can manage to the amount you can borrow. If a lender charges an upfront fee, the tool shows the true APR. Everything runs in your browser and nothing is uploaded.
How to use the loan calculator
- Enter the loan amount, rate and term. Use years and months for the term.
- Add an upfront fee if the lender charges one, to see the APR.
- Try extra payments. Enter a monthly extra amount or choose accelerated bi-weekly.
- Open the schedule for a yearly or monthly breakdown, with dates if you add a first payment date.
- Compare terms such as 3, 5 and 7 years.
- Check affordability by entering the monthly payment you can manage.
The loan payment formula
For a standard amortizing loan, the monthly payment is P x r / (1 - (1 + r)^-n). Here P is the amount borrowed, r is the interest rate per month (the annual rate divided by 12) and n is the number of monthly payments. Each month the interest is the opening balance times r. The rest of the payment reduces the balance. Because the balance shrinks, interest falls and the principal share rises, which is why a long loan front-loads interest.
Worked example: borrow $25,000 at 6.5% for 60 months. The monthly rate is 0.5417 percent and the payment is $489.15. In the first month interest is $135.42 and $353.74 reduces the balance. After 60 payments you have paid $29,349.22, of which $4,349.22 is interest.
| Term | Monthly payment | Total interest |
|---|---|---|
| 3 years | $766.23 | $2,584.10 |
| 5 years | $489.15 | $4,349.22 |
| 6 years | $420.25 | $5,257.87 |
| 7 years | $371.24 | $6,183.82 |
Loan payment tables by amount, rate and term
If you only need a rough figure, these tables work like a quick loan payment calculator. All three assume a fixed rate, equal monthly payments and monthly compounding, and the figures are rounded to the cent. For your own numbers, enter them in the calculator above.
Monthly loan payment by amount and term at 6.5%
| Loan amount | 3 years | 5 years | 7 years |
|---|---|---|---|
| $5,000 | $153.25 | $97.83 | $74.25 |
| $10,000 | $306.49 | $195.66 | $148.49 |
| $15,000 | $459.74 | $293.49 | $222.74 |
| $20,000 | $612.98 | $391.32 | $296.99 |
| $25,000 | $766.23 | $489.15 | $371.24 |
| $30,000 | $919.47 | $586.98 | $445.48 |
| $40,000 | $1,225.96 | $782.65 | $593.98 |
| $50,000 | $1,532.45 | $978.31 | $742.47 |
How the interest rate changes a $25,000, five-year loan
| Interest rate | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 3% | $449.22 | $1,953.04 | $26,953.04 |
| 4% | $460.41 | $2,624.78 | $27,624.78 |
| 5% | $471.78 | $3,306.85 | $28,306.85 |
| 6% | $483.32 | $3,999.20 | $28,999.20 |
| 6.5% | $489.15 | $4,349.22 | $29,349.22 |
| 7% | $495.03 | $4,701.80 | $29,701.80 |
| 8% | $506.91 | $5,414.59 | $30,414.59 |
| 9% | $518.96 | $6,137.53 | $31,137.53 |
| 10% | $531.18 | $6,870.57 | $31,870.57 |
| 12% | $556.11 | $8,366.67 | $33,366.67 |
Each extra percentage point adds roughly $11 to $12 a month on this loan and about $670 to $730 of total interest, so shopping for a lower rate pays off.
Monthly payment per $1,000 borrowed
| Rate | 3 years | 5 years | 7 years | 10 years |
|---|---|---|---|---|
| 4% | $29.52 | $18.42 | $13.67 | $10.12 |
| 5% | $29.97 | $18.87 | $14.13 | $10.61 |
| 6% | $30.42 | $19.33 | $14.61 | $11.10 |
| 7% | $30.88 | $19.80 | $15.09 | $11.61 |
| 8% | $31.34 | $20.28 | $15.59 | $12.13 |
| 10% | $32.27 | $21.25 | $16.60 | $13.22 |
To use the last table for any amount, divide the loan by 1,000 and multiply by the figure. For example, $18,000 at 7% over five years is 18 x $19.80 = $356.40 a month, in line with the calculator within a few cents of rounding.
How extra payments shorten a loan
Extra money paid toward a loan reduces the principal immediately, so every later month accrues less interest. On the $25,000 example, adding $100 a month clears the loan in 49 months instead of 60 and cuts total interest from $4,349 to about $3,484, a saving of roughly $865. An accelerated bi-weekly plan, which pays half the monthly amount every two weeks, adds up to one extra payment a year and gives a similar boost. Before paying extra, check that your lender applies it to principal and does not charge a prepayment penalty.
Choosing between a short and a long term
A short term costs more each month but saves a lot of interest. A long term is easier on the budget but costs more in total. In the table above, going from five to seven years lowers the payment by about $118 a month but adds about $1,835 of interest. The right choice depends on how comfortably you can afford the payment and what else you want to do with the money. The compare tab lets you test any set of terms.
Using the loan calculator for car, personal, student and other loans
The same formula covers most fixed-rate instalment loans, but the inputs you enter differ.
- Car loans. Enter the price minus your down payment and trade-in, then the rate and term. Car loan terms commonly run from three to six years. A longer term lowers the payment but raises the interest, and you can owe more than the car is worth for longer.
- Personal loans. Enter the amount and term. Origination fees are common, so enter the fee percentage to see the APR.
- Student loans. Enter the balance, rate and remaining term. Federal and private loans offer different repayment options, such as income-driven plans, which this tool does not model.
- Home improvement and other loans. Any loan with a fixed rate and equal payments works.
- Mortgages. The tool gives principal and interest only. Property tax and insurance are extra, and a refinance has its own costs, so use a dedicated refinance calculator when you are comparing a new mortgage with an old one.
- Interest-free or promotional offers. Enter 0% to get the payment, then check what happens when the promotion ends.
Interest rate, APR and fees
The interest rate sets the interest you pay on the balance. The annual percentage rate, or APR, is a broader measure that includes certain fees, so it better reflects the true cost. If you pay a 2 percent origination fee on a loan, you receive less than you borrow but repay on the full amount, so the APR is higher than the stated rate. Enter the fee percentage and the calculator solves for the APR. When comparing offers, compare APRs and also the total repaid.
Flat rate versus reducing balance interest
Some lenders quote a flat rate. Interest is charged on the original amount for the whole term, even though you repay part of it every month. A reducing balance loan, like the one this calculator models, charges interest only on what you still owe. The two cannot be compared at the same headline rate.
A 5 percent flat rate on $10,000 over three years adds $1,500 of interest and costs $319.44 a month. The same $10,000 at 5 percent on a reducing balance costs $299.71 a month and $789.52 of interest. The flat-rate loan has an effective rate of about 9.3 percent a year. To compare offers, work out the effective rate or APR first. You can do this in the calculator by changing the rate until the monthly payment matches the lender's figure.
In the United States a simple interest loan usually means interest accrues on the outstanding balance, which is the same idea as this calculator. A flat-rate loan is a different product, so read how your lender calculates interest.
How much can you afford to borrow?
Start with the payment you can comfortably make and work backwards. The largest loan equals the payment multiplied by (1 - (1 + r)^-n) divided by r. At $500 a month, 6.5 percent and five years the figure is about $25,554. Lenders also look at your income and other debts, often as a debt-to-income ratio, so treat this as a budget guide rather than an approval.
Calculate a loan payment in Excel or Google Sheets
Spreadsheets have a built-in function for it. In Excel or Google Sheets, =PMT(rate/12, months, -amount) returns the monthly payment. For $25,000 at 6.5 percent over 60 months, =PMT(0.065/12, 60, -25000) returns 489.15, matching the calculator. Multiply the result by the number of months and subtract the amount borrowed to get total interest. The amount is entered as a negative number so that the payment comes out positive. Download the schedule CSV from the calculator to continue in a spreadsheet, for example to model irregular extra payments.
Tips for paying less interest
- Shop around. Even half a point lower can save hundreds.
- Pick the shortest term you can afford.
- Pay extra when you can, especially early on.
- Avoid fees or compare the APR including them.
- Improve your credit score before applying for a better rate.
- Read the agreement for prepayment penalties and variable-rate terms.
Limits, privacy and responsible use
The calculator assumes a fixed rate and equal monthly payments with monthly compounding. It does not model variable rates, interest-only periods, balloon payments, deferment or lender-specific rounding. Results are estimates, not an offer or financial advice. Nothing you enter leaves your browser.
Related free tools
Use these free online tools together with this one:
- See how savings grow over time with the compound interest calculator.
- Convert rates and percent changes with the percentage calculator.
- Fit the repayment into your monthly budget with the budget planner calculator.
- Compare a new rate on a home loan with the mortgage refinance calculator.
- Estimate business loan payments with the SBA loan calculator.
- See how a raise changes what you can afford to repay with the pay raise calculator.
- Turn an hourly wage into a yearly income figure for a lender with the hourly to salary calculator.
- Test a shorter or longer mortgage term with the refinance loan term calculator.
- Check whether a rental can cover its loan payment with the rental property cash flow calculator.
Frequently asked questions
What is a loan calculator?
A tool that turns a loan amount, interest rate and term into a monthly payment, total interest and payoff date. This one also builds a full amortization schedule and shows the effect of extra payments.
How do I calculate a monthly loan payment?
Use payment = P x r / (1 - (1 + r)^-n), where P is the amount borrowed, r the monthly rate (annual rate divided by 12) and n the number of months. For $25,000 at 6.5% over 60 months the payment is $489.15.
What is an amortization schedule?
A table that splits every payment into interest and principal and shows the balance left. Early payments are mostly interest, and later ones are mostly principal.
How much interest will I pay in total?
Total interest is the monthly payment times the number of payments, minus the amount borrowed. On $25,000 at 6.5% for five years it is $4,349.22.
How do extra payments help?
Extra money goes straight to principal, so less interest accrues and the loan ends sooner. Adding $100 a month to the $25,000 example finishes it in 49 months instead of 60 and cuts interest to about $3,484.
What is an accelerated bi-weekly payment?
Paying half the monthly amount every two weeks gives 26 half-payments, equal to 13 full payments a year. The tool models it as one extra twelfth of the payment each month.
Is a shorter or longer term better?
A shorter term has a higher payment but far less total interest. A longer term eases the monthly burden but costs more overall. The compare tab shows the numbers side by side.
What is APR and how is it different from the interest rate?
APR folds upfront fees into the cost of borrowing as a yearly rate. If you enter a fee percentage, the tool solves for the APR that matches the net amount you actually receive.
How much can I borrow for a given payment?
Use the affordability tab. It reverses the formula: the loan equals payment x (1 - (1 + r)^-n) / r. At $500 a month, 6.5% and 5 years you can borrow about $25,554.
Does this work for car loans, personal loans and student loans?
Yes for any fixed-rate loan with equal monthly payments, including auto, personal, student and many mortgage-style loans. It does not model variable rates, interest-only periods or deferral.
What is a loan repayment calculator?
It is another name for a loan payment calculator. It works out the repayment due each month and the total you will repay over the term, from the amount, interest rate and number of months.
How much is the monthly payment on a $10,000 loan?
At 6.5% it is about $306.49 over 3 years and $195.66 over 5 years. Total interest is $1,033.64 and $1,739.69. Enter your own rate and term for an exact figure.
How much is the monthly payment on a $20,000 loan?
At 6.5% it is about $612.98 over 3 years and $391.32 over 5 years. Total interest is $2,067.28 and $3,479.38.
How do I calculate loan interest?
On a standard loan, each month's interest is the balance times the annual rate divided by 12. Total interest is the monthly payment times the number of payments, minus the amount borrowed. On a flat-rate or simple loan, interest is the amount times the rate times the years.
What is the difference between a flat rate and a reducing balance rate?
A flat rate charges interest on the original amount for the whole term. A reducing balance rate charges interest only on what you still owe. A 5% flat rate on $10,000 over 3 years has an effective rate of about 9.3% a year on a reducing balance.
How do I calculate a loan payment in Excel or Google Sheets?
Use =PMT(rate/12, months, -amount). For $25,000 at 6.5% over 60 months, =PMT(0.065/12, 60, -25000) returns 489.15.
How can I lower my monthly loan payment?
Choose a longer term, find a lower rate, borrow less or put more down, or refinance if your rate allows. A longer term lowers the payment but increases total interest, so compare both numbers.
What is the difference between principal and interest?
Principal is the amount you borrowed. Interest is the cost of borrowing it. Each payment covers that month's interest first and reduces the principal with the rest.
How long will it take to pay off my loan?
Enter the amount, rate and any extra monthly payment and the payoff date is shown. Paying an extra $100 a month on a $25,000 loan at 6.5% over 5 years clears it in 49 months instead of 60.
Can I use it for a mortgage?
You can estimate principal and interest. A mortgage also has taxes, insurance and sometimes fees, so use a dedicated mortgage calculator for the full monthly cost.
What if the interest rate is 0%?
The payment is simply the loan amount divided by the number of months, and total interest is zero. The calculator handles this case.
Why does my lender's figure differ slightly?
Lenders may round each payment, count days differently, add fees or insurance, or start interest on a specific date. Small differences are normal, so confirm with your lender.
How do I save the schedule?
Use Download schedule CSV to open it in a spreadsheet, or Print / save summary for a report with the key figures, yearly breakdown and chart.
Does paying off a loan early cost a penalty?
Some loans charge prepayment penalties. Check your agreement before making large extra payments.
Is my data stored or sent anywhere?
No. Everything is calculated in your browser and nothing is saved or uploaded.
Is this loan calculator free?
Yes. It is free to use online with no sign-up and no limit.
Sources and further reading
- Consumer Financial Protection Bureau, Consumer tools.
- Federal Trade Commission, Credit and loans.
- Investopedia, Amortization.
- Federal Reserve, Consumers and communities.
- Microsoft Support, PMT function.
Sources were consulted in October 2026. Standards and rules can change, so always check the official page for your situation.