Personal Loan Calculator – Estimate Your Loan Payments
Understand monthly payments, total interest, and total repayment obligations based on your loan size, rate, and term.
How this loan calculator helps
Use this loan payment calculator to estimate your monthly payment, total interest, and overall mortgage or financing cost before you borrow.
Formula: This calculator applies a standard amortization formula to estimate fixed monthly payments based on principal, interest rate, and term.
Assumptions: It assumes a fixed interest rate, monthly compounding, and no fees, taxes, or insurance costs unless separately added by the lender. Actual loan offers can vary by credit profile and product.
Worked example: A $320,000 mortgage at 6.25% over 30 years with a $60,000 down payment gives a monthly payment estimate and a total interest figure based on standard amortization.
- Loan amount: Total principal borrowed before any down payment.
- Loan term: Number of years used to repay the loan.
- Interest rate: Annual rate charged by the lender.
- Down payment: Amount paid upfront to reduce the financing amount.
- Monthly payment: Estimated fixed payment before taxes, insurance, or fees.
What the result means
Your payment estimate shows the recurring cost of borrowing, while the total interest figure shows how much the lender earns over the life of the loan. These values are most useful for comparing financing options before applying.
Related calculators
Savings calculator for planning the upfront cash needed for a down payment, Retirement calculator for understanding how borrowing choices fit into long-term cash flow.
Frequently asked questions
- Is this a lender quote? No. This is an estimate based on fixed-rate assumptions and a simplified amortization model.
- What costs are not included? Many loans include taxes, fees, mortgage insurance, or title costs, which can change the real monthly payment.
APR vs. interest rate: why the difference matters
The advertised interest rate on a loan doesn't tell the whole story. The APR (annual percentage rate) folds in origination fees and other upfront charges, giving a more accurate picture of the true cost of borrowing, which is why two loans with the same interest rate can have very different total costs.
Loan term length is another major lever: stretching a loan out lowers the monthly payment but increases total interest paid over the life of the loan, sometimes substantially. A shorter term costs more per month but can save a meaningful amount over the full repayment period.
- Check for prepayment penalties: Some loans charge a fee for paying off the balance early, which can offset interest savings.
- Compare offers by APR, not rate: Fees vary by lender and can make a lower rate more expensive overall.
- Consider your total debt load: A new loan payment affects how much room you have for other financial goals.
Creator & reviewers
Creator persona
- Avery BennettPersonal finance & everyday budgeting
Reviewer personas
- Devon ShawFormula & assumptions review
- Sage MitchellClarity & usability review