Loan Payment Calculator
Enter the amount, interest rate, and term to see your fixed monthly payment — plus the total interest you'll pay over the life of the loan.
Formula: standard fixed-rate amortization used by US lenders. Last verified: July 2026.
How loan payments are calculated
Fixed-payment loans (auto loans, personal loans, most mortgages) use the amortization formula:
M = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
where P is the amount borrowed, r is the monthly rate (APR ÷ 12), and n is the number of monthly payments. Example: $20,000 at 7.5% APR for 5 years gives a payment of about $400.76/month, and roughly $4,046 in total interest.
What your payment is really made of
Each payment covers that month's interest first; the remainder reduces your balance. Early on, a big slice is interest — over time the balance shrinks and more of each payment goes to principal. This is why:
- Extra payments early save the most interest — they cut the balance that all future interest is computed on.
- Longer terms mean lower payments but much more interest. Stretching the example above to 7 years drops the payment to $306 but raises total interest to about $5,760 — 42% more.
Typical interest rates (US, mid-2020s ballpark)
| Loan type | Typical APR range |
|---|---|
| Mortgage (30-year fixed) | 6–7.5% |
| New car loan | 6–9% |
| Used car loan | 8–12% |
| Personal loan (good credit) | 8–15% |
| Credit card | 20–28% |
Your actual rate depends heavily on credit score, term length, and lender — always compare at least three offers.
APR vs. interest rate
The APR (annual percentage rate) includes the interest rate plus most mandatory fees (origination fees, points), making it the honest number for comparing offers. Two loans with the same interest rate can have different APRs — pick by APR.
Sources
The rate table above is the one part of this page that is not arithmetic — it is a claim about the market, and a claim about the market is worth nothing without somewhere to check it. Each range was checked against the official series below on , and the reading at that date is given so you can see how stale this has become by the time you read it:
- Freddie Mac — Primary Mortgage Market Survey — the weekly benchmark for the 30-year fixed row. Week of 6 August 2026: 6.69%. Updated every Thursday, so this is the number to check first.
- Federal Reserve — G.19 Consumer Credit — commercial bank rates behind the car, personal loan and credit card rows. Release of 7 August 2026: new car (60-month) 7.14%, personal loan (24-month) 11.86%, credit cards 20.94% across all accounts and 22.15% on accounts actually carrying a balance.
- CFPB — Interest rate vs. APR — the regulator's own statement of why APR is the number to compare offers on, which is the claim made in the section above.
One row has no source. The G.19 covers new car loans only, so the used-car range is an industry ballpark rather than a published figure — treat it as the roughest line in the table, and get your own quote before relying on it.
Frequently asked questions
Does this work for mortgages?
Yes, for the principal-and-interest part. A real monthly housing payment adds property tax, homeowners insurance, and possibly PMI/HOA — typically 20–40% on top.
What happens if I pay extra each month?
With most loans, extra payments go straight to principal, shortening the loan and cutting total interest. Confirm your lender applies extras to principal and charges no prepayment penalty.
Why is my quoted payment slightly different?
Lenders may round differently, charge fees inside the loan, or use daily rather than monthly interest accrual. This calculator matches the standard amortization used by the large majority of installment loans.
This tool is for general information only and is not financial advice.