Free Loan Calculator
Know your true monthly cost — and the real price of borrowing — before you sign anything.
Payment breakdown
How to use the loan calculator
- Enter how much you want to borrow.
- Enter the annual percentage rate (APR) you were quoted.
- Enter the loan term in years — the calculator converts it to monthly payments.
- Compare the monthly payment against your budget, and check the total interest to see the true cost.
Borrowing wisely
The monthly payment is only half the story — the total interest figure is what the loan really costs you, and it grows fast with longer terms. A 7-year auto loan at the same rate as a 5-year one lowers the monthly bill but can add thousands in interest, which is why lenders love stretching terms. Always compare loans by APR, not by the monthly payment a dealer quotes: a lower payment achieved through a longer term is usually the more expensive loan. Watch for the extras that do not show up in the rate — origination fees, prepayment penalties, and add-on products like extended warranties rolled into the principal all raise the true cost. If you can swing even a slightly larger monthly payment, choosing the shortest term you can comfortably afford is the simplest way to pay less interest. And before signing, check whether making extra principal payments is allowed without penalty; throwing a bonus or tax refund at the principal early in the loan saves the most, because early payments are mostly interest.
Frequently asked questions
How is the monthly payment calculated?
With the standard amortization formula: the monthly rate applied over the number of payments, so each payment covers that month's interest plus a slice of principal.
Does a longer term always cost more?
At the same APR, yes — more payments mean more months of interest charges. The monthly payment drops, but total interest rises.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing alone; APR folds in most lender fees, making it the better number for comparing loan offers.
Should I include a down payment in the loan amount?
No — enter only the amount you are actually borrowing, i.e. the price minus your down payment and any trade-in value.