Loans
Loan Calculator
Estimate a loan's monthly payment, interest, and total cost with fees, and see how extra monthly payments could shorten the payoff time.
How this loan calculator works
Enter the loan
The amount you borrow, the APR, and the term in years or months. The calculator works out the fixed monthly payment that repays the loan over the term.
Add fees, if any
Upfront fees paid separately from the loan, such as an origination fee, add to what the loan costs you without changing the payment or the interest.
Add an extra payment, if you like
An amount paid every month on top of the required payment goes straight to principal, so the balance falls faster and less interest accrues.
Compare the results
See the interest and time an extra payment could save, how other terms change the payment, and every payment in the schedule.
Understanding loan costs
Monthly payment
A fixed-rate loan has one payment for the whole term, worked out so the last payment clears the balance. Early payments are mostly interest; later ones are mostly principal.
Principal vs interest
Principal is the amount you borrow and repay. Interest is what borrowing it costs: each month, the APR divided by 12 on the balance still owed. As the balance falls, so does the interest.
How fees affect total borrowing cost
Fees paid upfront are part of what a loan costs, even though they are not in the payment. Interest plus fees is the total borrowing cost; comparing it across loans shows more than the payment alone.
How loan term changes total interest
$25,000 at 8% APR, with no extra payment, over different terms. Calculated the same way as the calculator above.
| Loan term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 36 months | $783.41 | $3,202.75 | $28,702.75 |
| 48 months | $610.32 | $4,295.55 | $29,795.55 |
| 60 months | $506.91 | $5,414.62 | $30,914.62 |
| 72 months | $438.33 | $6,559.90 | $32,059.90 |
| 84 months | $389.66 | $7,731.01 | $33,231.01 |
A longer term spreads the loan over more payments, so each one is smaller, but the balance is owed for longer and accrues more interest. A shorter term means larger payments and less interest in total.
How extra payments affect payoff
$25,000 at 8% APR over 5 years, with different extra monthly payments. Calculated the same way as the calculator above.
| Extra monthly payment | Planned payment | Payoff time | Interest | Interest saved |
|---|---|---|---|---|
| $0.00 | $506.91 | 5 years | $5,414.62 | $0.00 |
| $50.00 | $556.91 | 4 years, 6 months | $4,807.78 | $606.84 |
| $100.00 | $606.91 | 4 years, 1 month | $4,325.29 | $1,089.33 |
| $250.00 | $756.91 | 3 years, 2 months | $3,332.25 | $2,082.37 |
Every extra dollar goes to principal, so the balance falls faster and each later month accrues less interest. The required payment does not change; the loan simply ends sooner, with a smaller final payment.
Example loan calculation
$25,000 at 8% APR over 5 years, with $500 of upfront fees and $100 extra each month. Calculated the same way as the calculator above.
The standard schedule
- Required monthly payment
- $506.91
- Payoff time
- 5 years
- Interest
- $5,414.62
- Loan fees
- $500.00
- Total paid, with fees
- $30,914.62
- Total borrowing cost as % of principal
- 23.66%
With the extra payment
- Planned monthly payment
- $606.91
- Payoff time
- 4 years, 1 month
- Interest
- $4,325.29
- Interest saved
- $1,089.33
- Time saved
- 11 months
- Total paid, with fees
- $29,825.29
The last payment, payment 49, would be $193.61: just what is left of the balance and its interest.
Assumptions
- The APR stays the same for the whole loan, and payments are monthly. The first payment is one month after the loan starts.
- Each month's interest is the balance owed × the APR ÷ 12, rounded to the nearest cent (halves up). The monthly payment comes from the standard amortization formula, rounded to the nearest cent, and the final payment absorbs the rounding.
- With no fees and no extra payment, the results are exactly those of Calcora's Amortization Calculator: both use the same engine.
- Loan fees are paid upfront, separately from the loan: they are not borrowed and are not charged interest, so they do not change the payment. They are included in the total paid. If a fee is added to the amount you borrow, include it in the loan amount instead.
- An extra monthly payment is the same amount every month, from the first payment, applied to principal after that month's interest. The required payment stays the same; the loan is repaid early, and the final payment is whatever is left.
- Total borrowing cost as a percentage of principal is interest plus fees divided by the amount borrowed. It is not an APR, which also accounts for when interest and fees are paid.
- Taxes, insurance, late fees, prepayment penalties, and variable rates are not included.
- Results are estimates for education, based on the values you enter. They are not a loan offer or advice; a lender's figures can differ.
How Calcora calculates
- Every calculator explains the formula behind its result in plain language.
- Calculators are designed to run in your browser, so your inputs are not sent to Calcora.
- Results help you understand your options. They are not financial advice.
Frequently asked questions
How is the monthly payment calculated?
What does total paid include?
What if my fees are added to the loan?
How do extra payments save interest?
Is total borrowing cost as a percentage the same as APR?
How is this different from the Amortization and Car Loan calculators?
Does Calcora store my information?
Related calculators
To see how a loan's schedule works payment by payment, use the Amortization Calculator. Financing a vehicle? The Car Loan Calculator starts from the purchase price, down payment, and trade-in.