Loan Calculator

How a loan payment is calculated

The same fixed-payment amortization formula applies to almost every consumer loan — personal, auto, and student. Each monthly payment is split between interest (a portion of the remaining balance × the monthly rate) and principal (the rest, which actually reduces what you owe). Early in the term, more goes to interest; over time, the share flips.

Choosing a term

A longer term lowers your monthly payment but raises the total interest you pay. A shorter term costs more per month but is dramatically cheaper overall. Use the slider above to see exactly what the trade-off looks like for your loan.

APR vs. interest rate

APR (Annual Percentage Rate) folds in fees the lender charges, so it's the apples-to-apples way to compare offers. The rate slider here represents your APR.