Enter your loan amount, interest rate, and loan term to calculate your monthly payment. You'll also see the total interest paid and total repayment amount, plus a full amortization schedule breaking down principal and interest for every payment period. Also try the calculate Loan-to-Value (LTV).
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Total of All Payments
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Total Interest Paid
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Number of Payments
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A standard amortized loan payment is calculated using the formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the periodic interest rate, and n is the total number of payments. This ensures each payment covers both interest accrued and a portion of the principal, so the loan is fully paid off at the end of the term. See also our Personal Loan Calculator.
A good loan rate depends on the loan type, your credit score, and current market conditions. For personal loans, rates below 10% are generally considered competitive. Borrowers with excellent credit (720+) often qualify for the lowest rates. Comparing offers from multiple lenders is the best way to find a favorable rate for your situation.
The loan term is the total length of time you have to repay the loan. Compounding frequency refers to how often interest is calculated and added to your balance. A monthly compounding frequency (standard APR) means interest compounds 12 times per year. More frequent compounding results in slightly higher effective interest costs.
Yes — stretching your loan over more years reduces each individual payment, making it more manageable month-to-month. However, a longer term means you pay interest for more periods, so the total interest paid over the life of the loan will be significantly higher. Shorter terms cost more per month but save money overall. You might also find our calculate Total Interest Saved, Original Payoff Time & New Payoff Time (With Extra Payments) — Loan Repayment with Extra Payments useful.
Key factors include the total cost of borrowing (not just the monthly payment), the interest rate and whether it is fixed or variable, any origination fees or prepayment penalties, and how the payments fit into your monthly budget. It is also worth comparing multiple lenders and checking whether the loan purpose — such as debt consolidation or home improvement — justifies the cost.
An amortization schedule is a detailed table showing every payment you will make over the life of the loan. Each row breaks down how much of that payment goes toward reducing the principal and how much covers interest. Early payments are interest-heavy, while later payments pay down more principal.
Many loans allow early repayment, which reduces the total interest you pay. However, some lenders charge a prepayment penalty for paying off a loan ahead of schedule. Always check your loan agreement before making extra payments to ensure there are no additional fees.
Paying more frequently — such as biweekly instead of monthly — can reduce the total interest you pay over the life of the loan because your balance decreases faster. Making 26 biweekly payments per year is effectively equivalent to making 13 monthly payments instead of 12, accelerating your payoff timeline.