Calculate monthly payments and total interest for personal loans, auto loans, and student loans.
| Payment due | Payment | Principal | Interest | Balance |
|---|
All standard loan payments are calculated using the same amortization formula. Each payment covers the interest accrued that month, with the remainder reducing your principal balance. In the early months, most of your payment goes to interest. Over time, this shifts — by the final months, almost your entire payment is principal.
Where M = monthly payment, P = loan amount, r = monthly rate (APR ÷ 12 ÷ 100), n = total months.
These ranges are only a rough guide, not current quotes. Your own rate depends on your credit, the lender and the loan term, so use the APR from your actual loan offer.
| Loan Type | Credit Score | Typical APR Range |
|---|---|---|
| Personal Loan | Excellent (750+) | 6% – 11% |
| Personal Loan | Good (670–749) | 11% – 20% |
| Auto Loan (new) | Excellent | 5% – 8% |
| Auto Loan (used) | Good | 9% – 14% |
| Student Loan (federal) | N/A | Fixed rate set each year by law |
| Business Loan (SBA) | Good | 8% – 13% |
Three strategies can dramatically reduce your total interest paid: (1) Make bi-weekly payments — paying half your monthly payment every two weeks results in one extra full payment per year. (2) Round up your payment — paying $50–$100 extra per month can cut years off a loan. (3) Refinance — if rates drop or your credit improves, refinancing to a lower rate saves significantly.