Loan Calculator
Calculate monthly payments and total interest
📚 Examples, Rules & Help
⚡Quick Examples - Try These Calculations
🔍How it Works
Monthly Payment Formula: M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where: M = Monthly Payment, P = Principal (loan amount), r = Monthly interest rate (annual rate ÷ 12), n = Total number of payments (years × 12)
Total Interest: (Monthly Payment × Number of Payments) - Principal
Total Amount: Principal + Total Interest
📊Common Loan Types
Mortgage Loans
• 30-year: Lower payments, more interest
• 15-year: Higher payments, less interest
• Rates: Currently 6-8% (varies)
Auto Loans
• New cars: 4-7% interest
• Used cars: 6-12% interest
• Term: 3-7 years typical
Personal Loans
• Rates: 6-36% (depends on credit)
• Term: 2-7 years
• Amount: $1,000-$100,000
Student Loans
• Federal: 5-7% fixed rates
• Private: 3-14% variable
• Term: 10-30 years
💡Tips for Better Loan Rates
✅ Before You Apply
• Check credit score: 720+ gets best rates
• Pay down debt: Lower debt-to-income ratio
• Save for down payment: 20% avoids PMI
• Stable employment: 2+ years same job
🛒 Shopping for Loans
• Compare APR: Not just interest rate
• Shop within 14-45 days: Multiple inquiries count as one
• Consider credit unions: Often better rates
• Get pre-approved: Know your budget
⚠️Important Notes
This is an estimate: Actual loan terms may vary based on your credit score, income, debt-to-income ratio, and lender requirements.
Additional Costs: Mortgages include property taxes, insurance, and PMI. Auto loans may include taxes, fees, and extended warranties.
APR vs Interest Rate: APR includes fees and is higher than the interest rate. Use APR to compare loans.
Fixed vs Variable: Fixed rates stay the same; variable rates can change over time.
Always read loan terms carefully and consider consulting with a financial advisor for major purchases.