Loan Calculator

Payment, total interest, and cost of borrowing for any installment loan — personal, student, or signature.

How the math works.

M = P × r(1+r)ⁿ / ((1+r)ⁿ - 1) Where: P = loan principal r = monthly interest rate (annual rate ÷ 12) n = number of monthly payments Total Interest = (M × n) - P Total Paid = M × n

Any installment loan — personal, student, auto, or signature — uses the same amortization formula as a mortgage. The lender calculates a fixed monthly payment that pays off the principal plus all interest over the agreed term.

The key variable is the interest rate, which for personal loans typically ranges from 6% for excellent credit to 36% for subprime. Even a few percentage points dramatically affect total cost: a $25,000 loan at 8% over 5 years costs $3,387 in interest; the same loan at 18% costs $8,363.

Shorter terms mean higher monthly payments but substantially less total interest. Always compare the total paid column, not just the monthly payment, when evaluating loan offers.