What this loan calculator shows you
Enter three things — how much you're borrowing, the interest rate, and the term — and you get the monthly payment plus the part most calculators hide: the total interest you'll pay over the life of the loan. That number is what actually matters when you compare offers.
How loan amortization works
A fixed-rate loan is amortizing: you pay the same amount every month, but the split between interest and principal shifts over time. At the start, most of your payment covers interest. As the balance falls, more of each payment chips away at principal. The year-by-year schedule above makes that shift visible.
A quick example
Borrow $20,000 at 8.5% over 5 years and your payment is about $410 a month. You'll repay roughly $24,600 in total — about $4,600 of it interest. Shorten the term to 3 years and the monthly payment rises, but the total interest drops sharply, because you're borrowing the money for less time.
Ways to pay less interest
- Shorten the term. A shorter loan costs more per month but far less overall.
- Pay a little extra. Even a small monthly add-on goes straight to principal.
- Shop the rate. A percentage point on a large balance is worth thousands.
For a specific loan type, jump to the auto loan, personal loan, or mortgage calculator. To see the full month-by-month breakdown, use the amortization schedule calculator.