How the loan calculator works
This tool calculates the fixed monthly payment on an amortizing loan, the kind used for cars, personal loans, and most consumer borrowing. Each month you pay the same amount, with the split gradually shifting from interest toward principal as the balance falls.
M = P · [ i(1+i)ⁿ ] / [ (1+i)ⁿ − 1 ]
P = loan amount · i = monthly rate (APR ÷ 12) · n = months (years × 12)
Frequently asked questions
How can I lower my monthly payment?
You have three levers: borrow less, get a lower interest rate, or choose a longer term. A longer term lowers the monthly payment but increases the total interest you pay, so weigh both.
What is APR and why does it matter?
APR is the yearly cost of the loan including interest. A lower APR means a cheaper loan. Even one percentage point makes a real difference over a multi-year term, try it above.
Does paying extra each month help?
Yes. Any amount above the scheduled payment goes straight to principal, which shortens the loan and cuts total interest. Many lenders allow this with no penalty.
Car loan vs personal loan?
The math is identical. Car loans are usually secured by the vehicle and often have lower rates; personal loans are unsecured and tend to cost more. Plug in your real rate for an accurate figure.
Estimates only, not financial advice. Confirm figures with your lender.