Loan Calculator
Calculate monthly loan payments and total interest for any personal, auto, or student loan.
Frequently Asked Questions
What is the monthly payment on a $10,000 loan?
At 7.5% interest over 3 years, the monthly payment on a $10,000 loan is approximately $311. Over 5 years at the same rate, it drops to $200/month but you pay more total interest ($2,000 vs $1,193).
How is a loan payment calculated?
Loan payments use the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Each payment covers interest for that period plus a portion of the principal.
What is a good interest rate for a personal loan?
As of 2025, average personal loan rates range from 11–25% APR for most borrowers. Excellent credit (720+) can get 7–12% APR. Below 10% is considered very good. Credit unions and online lenders often offer better rates than banks. Avoid rates above 30%, as these approach payday loan territory.
Is it better to take a shorter or longer loan term?
Shorter terms mean higher monthly payments but less total interest paid. For example, a $15,000 loan at 8%: over 3 years you pay ~$2,000 in interest; over 7 years, ~$4,600. Choose a shorter term if you can afford the payments. Only extend the term if cash flow is tight.
How much does a 1% difference in interest rate matter?
On a $20,000 loan over 5 years, going from 7% to 8% adds about $550 in total interest and raises monthly payments by ~$9. On larger amounts like $50,000, a 1% rate difference over 5 years costs ~$1,400 more. Rates matter more on longer terms and larger principals.