Loan Calculator
Personal & Auto Loan Calculator • 2026 rates
Quick Answer
Payment Formula: \(PMT = \frac{PV \times r \times (1+r)^n}{(1+r)^n-1}\). For $25,000 at 6% for 5 years: $483.32/month.
Loan Details
Tip: Extra payments reduce interest significantly.
Advanced Options
Loan Analysis
$483.32
Monthly Payment
$4,000.00
Total Interest
$29,000.00
Total Paid
2028-01-01
Payoff Date
| Month | Payment | Principal | Interest | Balance |
|---|
| Year | Total | Principal | Interest | Balance |
|---|
Loan Basics
What is a Loan?
Money borrowed with agreement to repay with interest over time.
Payment Formula
\(PMT = \frac{PV \times r \times (1+r)^n}{(1+r)^n-1}\)
Where PMT=monthly payment, PV=loan amount, r=monthly rate, n=payments.
Key Rules:
- Interest calculated on remaining balance
- Early payments save more interest
- Small rate changes = big savings
Strategies
Amortization
Early payments are mostly interest, later payments are mostly principal.
Payoff Faster
- Round up payments
- Extra annual payment
- Bi-weekly payments
- Apply windfalls
Considerations:
- Loan origination fees
- Prepayment penalties
- APR vs interest rate
- Credit score impact
FAQ
Q: How do extra payments save money?
A: Extra payments reduce principal immediately, lowering interest on future payments. $100 extra monthly saves ~$32K on 30-year loan.
Q: 15 vs 30-year mortgage?
A: 30-year: $247K interest. 15-year: $115K interest. Higher monthly payments but significant savings.
About
CFP Team
This calculator was created
This calculator was created by our Financial Calculators Team , may make errors. Consider checking important information. Updated: April 2026.