Plan a fixed-rate loan with monthly payment and schedule

Plan a fixed-rate loan.

Type a principal, an annual rate, and a term in months. See the monthly payment, total interest, total cost, and the first 12 months of the amortization schedule. Pure browser; no login.

Monthly payment

$299.71

Total interest

$789.52

Total cost

$10,789.52

MonthPaymentInterestPrincipalBalance
1$299.71$41.67$258.04$9,741.96
2$299.71$40.59$259.12$9,482.84
3$299.71$39.51$260.20$9,222.64
4$299.71$38.43$261.28$8,961.36
5$299.71$37.34$262.37$8,698.99
6$299.71$36.25$263.46$8,435.53
7$299.71$35.15$264.56$8,170.97
8$299.71$34.05$265.66$7,905.30
9$299.71$32.94$266.77$7,638.53
10$299.71$31.83$267.88$7,370.65
11$299.71$30.71$269.00$7,101.65
12$299.71$29.59$270.12$6,831.54

Showing first 12 of 36 months.

Planning a fixed-rate loan

Car loans, personal loans and most student loans are amortising loans: you repay a fixed amount every month, and each payment covers the interest due that month plus a slice of the principal. Knowing the monthly payment and the total interest before you sign makes it easy to compare offers and to see what a longer term really costs.

Enter the amount, the annual rate and the term in months. The calculator shows the monthly payment, the total interest and the total you will repay, plus the first 12 months of the repayment schedule.

How to use it

  1. Enter the principal, the amount you borrow.
  2. Enter the annual interest rate as a percentage.
  3. Enter the term in months: 36 for three years, 60 for five, 72 for six.
  4. Compare the monthly payment with the total interest, then try a shorter or longer term to see the trade-off.

Example: a five-year car loan

Input
Principal 25,000, 7.9% a year, 60 months
Output
Monthly payment: $505.71
Total interest: $5,342.85
Total cost: $30,342.85

The interest adds about 21% to the price of the car over five years.

Shorter or longer term?

Stretching a loan over more months lowers the payment but raises the total interest, because you owe money for longer. Lenders also often charge a higher rate for longer terms. For a car, a long loan carries an extra risk: the car loses value faster than the balance falls, so for the first years you may owe more than it is worth.

Try the same loan at 36, 48, 60 and 72 months here and compare the total interest line. The cheapest loan is usually the shortest one you can comfortably afford every month.

Nominal rate and APR

This tool uses the nominal annual rate divided by 12 as the monthly rate, which is how most fixed-rate consumer loans are quoted. The APR (annual percentage rate) that lenders must disclose also includes fees such as origination charges, so it is the better number for comparing two offers. A loan with a lower rate but large fees can cost more than one with a slightly higher rate and none.

Paying early

Most of the interest is paid in the early months, when the balance is highest. An extra payment towards principal reduces the balance for every month that follows, which cuts the total interest. Before paying extra, check that your contract has no prepayment penalty and that the lender applies the money to principal rather than to future payments.

Questions

What if the rate is 0%?

Then the payment is simply the principal divided by the number of months, and the total interest is zero. The calculator handles that case.

Why are amounts shown in dollars?

The display uses US dollar formatting, but the maths is the same for any currency. Read the numbers in your own currency.

Does this include insurance or fees?

No. Add any monthly insurance or account fees to the payment yourself, and use the APR to compare offers.