Calculate monthly payments, total interest, and see how extra payments dramatically reduce what you owe.
Whether you're evaluating a personal loan, financing a car, or managing a student loan, understanding the true cost of borrowing is essential. Our loan calculator shows your monthly payment, full amortization schedule, and — crucially — how much money and time you can save by making extra payments each month.
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This is one of the most impactful features of our calculator, and the results are often surprising. On a $25,000 auto loan at 7.5% over 5 years, your standard payment is $500.53/month and you'll pay $5,032 in total interest.
If you add just $50 extra per month, you'd save $449 in interest and pay off the loan nearly 5 months early. That's a significant return on a small commitment.
On larger loans — like student loans or personal loans stretched over 10+ years — the savings multiply dramatically. A $40,000 student loan at 6% over 10 years costs $13,333 in interest. Adding $100/month to each payment cuts that to under $9,000 — a savings of over $4,000 and nearly two years of payments.
💡 The most effective time to make extra payments is early in the loan, when more of your payment is going toward interest. Every dollar of extra principal you pay in year one saves you more than the same dollar paid in year four.
Personal loans are unsecured — meaning there's no collateral attached. Because of this, interest rates tend to be higher than secured loans, typically ranging from 6% to 36% depending on your credit score. They're commonly used for debt consolidation, home improvements, medical bills, or large purchases. Terms usually run 2–7 years.
Auto loans are secured by the vehicle you're financing. This lower risk for the lender means lower rates — typically 4–10% for buyers with good credit, though subprime rates can reach 20%+. New cars typically get better rates than used cars. Standard terms are 36, 48, 60, or 72 months. Be cautious with 72-month terms — you'll pay more interest and risk being "underwater" on the loan if the car depreciates faster than you're paying it down.
Federal student loans have fixed rates set annually by Congress and typically offer income-driven repayment options, deferment, and forgiveness programs. Private student loans have variable or fixed rates and fewer protections. Always exhaust federal options before turning to private lenders.
The interest rate is the base cost of borrowing expressed as a percentage. The Annual Percentage Rate (APR) includes the interest rate plus any fees — origination fees, closing costs, prepaid items — and is a more accurate measure of the true annual cost of the loan. When comparing loan offers, always compare APRs, not just interest rates.
A fixed rate stays the same for the life of the loan. Your payment never changes, making budgeting simple. Most personal loans and mortgages are fixed.
A variable rate (also called adjustable rate) starts lower but can increase over time based on a benchmark index (like SOFR or the prime rate). Variable rates are common with HELOCs, some student loans, and adjustable-rate mortgages. They can save money when rates are falling but can increase your payment substantially when rates rise.