Enter your loan amount, term and rate to see your monthly payment, the total interest you'll pay, and your payoff date — updated live as you type.
Every fixed-rate loan — personal, auto, student or home — is repaid the same way: through amortization. You make equal monthly payments, and each one is split between interest on the balance you still owe and principal that shrinks that balance. Early on, most of your payment goes to interest; later, most goes to principal.
The monthly payment comes from one formula:
M = P · r / (1 − (1 + r)−n)
where P is the amount you borrow, r is the monthly rate (your APR divided by 12), and n is the number of monthly payments. This is the same math your lender uses, so the payment here should match a quote to the dollar.
How is a loan payment calculated?
Using the amortization formula above. Each month, interest is charged on your remaining balance, and whatever's left of your payment reduces the principal.
Does a longer term lower my payment?
Yes, but you pay interest for longer, so the total cost is higher. A shorter term costs more each month but far less overall.
What is APR?
The annual percentage rate — the yearly cost of borrowing. We divide it by 12 for the monthly rate applied to your balance.