How it works
Use this calculator for any fixed-rate loan that is repaid in equal monthly installments: personal loans, debt consolidation loans, boat or RV loans, and similar.
Each payment first covers the interest that accrued on the balance that month; the rest reduces principal. Early payments are interest-heavy, and the principal share grows over time.
Adding an extra amount each month goes entirely to principal, which shortens the loan and cuts total interest.
Formula
M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount borrowed, r the monthly rate (APR ÷ 12) and n the number of months.
Questions people ask
Does a longer term save money?
No. A longer term lowers the monthly payment but you pay interest for more months, so total interest goes up. Longer terms also often carry higher rates.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR also folds in required fees such as origination charges, so it is the better number for comparing offers.
Can I pay off a personal loan early?
Most personal loans allow early payoff without penalty, but check your agreement for a prepayment fee before sending large extra payments.