ToolHub

Loan Calculator

Auto, student, personal, home-equity — with amortization

Average 2026 used-car loan: $30K at ~7.5% APR for 60 months.

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years
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Even $50-100 extra per month dramatically cuts total interest.

$601.14/ month

Principal and interest

Where your money goes16.8% interest
Principal $30,000Interest $6,068
Total paid$36,068
Total interest$6,068
Payoff in5y 0m

Quick lookup

Monthly payment by loan amount and term (typical 2026 rates)

Quick reference for the most-searched loan scenarios. Rates reflect mid-2026 averages for borrowers with good credit. Your actual rate depends on credit score, loan type, and lender.

Loan amount5 yr / 7.5% APR5 yr / 9% APR10 yr / 7.5% APR10 yr / 9% APR
$5,000$100$104$59$63
$10,000$200$208$119$127
$15,000$301$311$178$190
$20,000$401$415$237$253
$25,000$501$519$297$317
$30,000$601$623$356$380
$40,000$802$830$475$507
$50,000$1,002$1,038$594$633

Add APR fees if quoted separately. A $10K personal loan at 12% for 3 years is about $332/month, total interest ~$1,952.

Overview

What does this calculator do?

The loan calculator computes the monthly payment, total interest, and amortization schedule for any fixed-rate loan: auto, student, personal, or home-equity. It uses the standard amortization formula, the same one banks use internally. Add an extra monthly payment to see how much time and interest you would save by paying down principal faster.

The math

The loan payment formula

For a fixed-rate loan with monthly compounding:

M = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Where M is the monthly payment, P is the principal (loan amount), r is the monthly interest rate (annual rate / 12), and n is the total number of monthly payments (years × 12). The numerator and denominator both have the same exponential term — it cancels mathematically only when n is very small.

Loan types compared

Auto, student, personal, home equity

Auto loans

Secured by the vehicle. New car rates 6-9% APR, used 7-12% in 2026. Typical term 4-6 years. Longer terms (7+ years) cost more in interest and risk being upside-down.

Student loans

Federal undergrad direct loans around 6.5%. Grad loans 7-8%. Private refinanced loans 6-15% depending on credit. Standard term 10 years; extended terms available.

Personal loans

Unsecured, no collateral. Rates 8-25% APR depending on credit score. Common terms 2-5 years. Used for debt consolidation, home improvement, medical bills.

Home equity loans

Secured by your home equity. 8-10% APR for fixed loans in 2026. Terms 5-30 years. Interest may be tax-deductible if used to improve the home.

HELOC

Variable-rate revolving line of credit secured by your home. Rates float with the prime rate. Best for ongoing or uncertain expenses, not a single lump sum.

Mortgage

A specific type of loan secured by real estate. Use our dedicated Mortgage Calculator instead — it includes property tax, insurance, and full PITI.

The biggest lever

How extra payments change the math

An extra payment goes 100% to principal (no interest portion). That reduces the balance interest is calculated on next month, which means even more of the next regular payment goes to principal too. The effect compounds.

Worked example

On a $30,000 auto loan at 7.5% APR for 5 years:

  • Base monthly payment: $601
  • Total interest paid over 5 years: $6,062
  • Add $100/month extra: pays off in 4 years 2 months, total interest $5,068 (saves $994 and 10 months)
  • Add $200/month extra: pays off in 3 years 7 months, total interest $4,309 (saves $1,753 and 17 months)

Check for prepayment penalties

Most modern US loans do not have prepayment penalties, but some do — especially older mortgages and certain subprime auto loans. Read your contract before doubling up.

A trap to avoid

Watch the total interest, not just the monthly payment

A longer loan term has a lower monthly payment but you pay much more total interest. On a $20,000 auto loan at 8% APR:

  • 3-year term: $627/month, total interest $2,562
  • 5-year term: $406/month, total interest $4,332
  • 7-year term: $312/month, total interest $6,200 (more than 2x the 3-year total)

The longer term saves you $321/month vs the 3-year option but costs an extra $3,638 over the life. The trap: lenders advertise monthly payment because it sounds small. Always check total interest before agreeing to a longer term.

Behind the scenes

Privacy and how it runs

Everything runs in your browser

Your loan numbers stay on your device. No values are sent to any server, no cookies are set with your inputs, and the page works offline once loaded.

Common questions

What's a good APR for an auto loan?

In mid-2026: under 6.5% is excellent, 6.5-9% is typical for good credit, 10-15% is subprime, and over 15% suggests very poor credit or a predatory lender. Always shop at least 3 lenders.

What's the difference between APR and interest rate?

Interest rate is the cost of borrowing the principal. APR adds origination fees, points, and other costs and expresses them as an annualized rate. APR is always equal to or higher than the interest rate, and it's the more accurate number for comparing loan offers.

Does extra payment reduce my monthly bill?

No — extra payments shorten the loan but the regular monthly payment stays the same. If you want a lower monthly bill, refinance to a longer term (which costs more total interest) or to a lower rate.

Should I take a 0% APR loan?

0% APR auto and store financing is genuinely free money — if you would have bought the item anyway and the cash price is the same as the financed price. Watch for: deferred-interest gotchas (full interest charged retroactively if you miss the term), and cash discounts you forfeit by financing.

How is interest calculated on a loan?

For amortized installment loans (the type this calculator handles): monthly interest = current balance × annual rate / 12. For credit cards: similar but compounding may be daily. For some short-term loans: simple interest on the original principal.

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Quick steps

1

Pick a loan type

Auto, student, personal, or home-equity. Each preset seeds realistic 2026 rates and term lengths you can then adjust.

2

Enter the numbers

Loan amount, APR, and term in years. Add an extra monthly payment to see how much faster you'd pay it off.

3

Read the breakdown

Monthly payment, total interest, payoff date, and a color-coded bar showing how much of your money goes to interest vs principal.

Frequently asked questions

How is a monthly loan payment calculated?

The standard formula is M = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly rate (annual rate / 12), and n is the total number of months. Our calculator applies this exactly.

What's the difference between APR and interest rate?

Interest rate is the cost of borrowing the principal. APR adds in fees like origination and points, expressed as an annualized rate. APR is always equal to or higher than the interest rate, and it's the better number for comparing offers.

Should I make extra payments on my loan?

If your loan has no prepayment penalty (most modern auto, student, and personal loans don't), extra payments save you a lot of interest. Even $50-100 extra per month can shave years and thousands off the total cost.

What loan term should I pick?

Shorter term = higher monthly payment but much less total interest. Longer term = lower monthly payment but more interest over the life. For auto loans, 5 years (60 months) is a common balance; for student loans, 10 years is the federal standard.

Why is my first payment mostly interest?

Each month, interest is charged on the outstanding balance. Early on, that balance is at its maximum, so the interest portion is biggest. As the balance drops, more of each payment goes to principal.

Can I use this for a mortgage?

Yes — but our dedicated Mortgage Calculator includes property tax, homeowners insurance, and PITI breakdown, which most home buyers need. Use this loan calculator for non-housing loans.