Loan Calculator
The one calculator for any fixed-rate loan. Enter the amount, rate and term to see your monthly payment, the total interest you'll pay, and your payoff date — then add extra payments to watch both shrink.
Estimates are for illustration and education only — not a loan offer or financial advice. Actual terms, fees and APR vary by lender.
Monthly payment per $10,000 borrowed
The payment on a $10,000 loan by rate and term — multiply by your loan size in ten-thousands for a quick estimate.
| Rate | 3 years | 5 years | 7 years | 10 years |
|---|---|---|---|---|
| 5% | $300 | $189 | $141 | $106 |
| 7% | $309 | $198 | $151 | $116 |
| 8.5% | $316 | $205 | $158 | $124 |
| 11% | $327 | $217 | $171 | $138 |
| 15% | $347 | $238 | $193 | $161 |
Figures are the fixed monthly payment on a $10,000 fully-amortizing loan, rounded. Longer terms lower the payment but raise total interest.
How loan repayment works
A fixed-rate loan is repaid in equal monthly payments through a process called amortization. Each payment is the same, but its split changes over time: early on, most of it covers interest; later, most goes to principal. This calculator computes that payment and traces the balance all the way to zero.
The three levers
Your payment is set by three numbers: how much you borrow, the interest rate, and the term. A bigger loan or higher rate raises the payment; a longer term lowers it — but stretching the term means more payments, so you pay more interest overall even though each month feels easier.
Why early payments are mostly interest
Interest is charged on the balance still owed, and the balance is highest at the start. So in month one, a large slice of your payment is interest and only a little chips away at principal. As the balance falls, the interest portion shrinks and principal accelerates — which is why the balance curve above drops slowly at first, then faster.
The power of extra payments
Every extra dollar goes straight to principal, skipping all the future interest that dollar would have accrued. Even a small extra amount each month can cut months or years off the term and save a surprising amount of interest — try it with the optional field above.
Rate vs. APR
The interest rate drives this calculation, but lenders also quote an APR, which folds in fees to reflect the true annual cost. When comparing offers, compare APRs. To see the honest annual rate behind any quote, use our effective annual rate calculator.
The loan payment formula
Every fixed-rate loan uses the same amortising-payment formula. It finds the one constant monthly amount that pays off the balance and all its interest in exactly the chosen number of payments.
How to pay less interest
Three levers control the total cost of any loan. Pull the right ones and you can save thousands without straining your budget.
Cuts total interest save
- A shorter term — the single biggest lever
- A lower rate from better credit or shopping around
- Extra payments applied straight to principal
- Borrowing only what you actually need
Adds to it costs
- A longer term that lowers the payment but raises interest
- A higher APR compounding over more months
- Prepayment penalties on some loans
- Refinancing that resets the clock without a rate cut
The power of one extra payment. Because early payments are mostly interest, adding even a small amount to principal early shortens the loan and removes interest from every later month. A single extra payment a year can knock years off a long loan.
Shorter term vs lower payment. A longer term is tempting because the monthly number is smaller, but you pay for that comfort many times over in interest. Choose the shortest term whose payment you can comfortably sustain, and let the formula do the rest.