Loan inputs
Change the inputs to compare affordability and long-term cost.
Essential Calculator
Loan Calculator
Use this loan calculator to estimate monthly payment, total interest, and the full cost of borrowing before you apply.
How to use this page
- Enter the amount borrowed, annual rate, and repayment term.
- The chart tracks remaining balance so payoff speed is easy to understand.
- Use the results to compare shorter and longer terms before committing.
Results
Monthly payment$497
Total interest$4,844
Total paid$29,844
M60$0
What this calculator helps you see
A strong loan calculator should make the tradeoff between term length and total interest obvious. This version surfaces the monthly payment quickly, then shows how much the loan really costs over time.
When to use this calculator
Compare lender offers
Use the same loan amount with different rates and terms to see which offer lowers total borrowing cost, not just the monthly payment.
Check affordability before applying
A quick monthly payment estimate helps you decide whether to borrow less, stretch the term, or delay the purchase.
Formula
Payment = P × r ÷ (1 - (1 + r)^-n)
P is the amount borrowed, r is the monthly interest rate, and n is the number of monthly payments.
Worked example
For a $25,000 loan at 7.2% over 5 years, the monthly payment is manageable, but the full interest cost is still large enough to matter during lender comparison.
| Item | Value |
|---|---|
| Loan amount | $25,000 |
| Interest rate | 7.2% |
| Term | 5 years |
| What to watch | Total interest versus a shorter term |
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Before you decide
- Outputs are estimates and should be reviewed against lender or plan-specific terms.
- Inputs are intentionally transparent so assumptions are easy to audit.
- Rates, fees, taxes, and account terms can change the final result.
Page details
- Updated April 15, 2026
- For assumptions and general guidance, see Methodology.
- For how explanatory content is written, see Editorial Policy.
Common tradeoff
| Option | Monthly payment | Total interest |
|---|---|---|
| 3-year term | Higher | Lower |
| 5-year term | Moderate | Moderate |
| 7-year term | Lower | Higher |
Common questions
Why does a longer loan term reduce the monthly payment but increase total cost?
A longer term spreads principal over more months, but it also leaves the balance outstanding longer, which compounds interest charges.
Can I use this for auto loans and personal loans?
Yes. The math works for most standard fixed-rate installment loans as long as the payment structure is monthly and fully amortizing.