Free Loan Calculator
Auto, personal, student, and home equity loans. Monthly payment, total interest, amortization schedule, and extra-payment savings — all in one place.
Full purchase price before down payment
18.8% of vehicle price · Loan: $26,000
Typical new-car rate: 5–8% with good credit
Monthly Payment
$508.72
Principal & interest · 60 payments · payoff Apr 2031
Total Cost of Borrowing
Interest is 14.8% of what you pay back.
Loan Summary
Affordability Guidance
Financial advisors recommend keeping your car payment (plus insurance) under 20% of take-home. The 20/4/10 rule: 20% down, 4-year max term, payment ≤ 10% of gross income.
🔒 All calculations run in your browser — no data is uploaded or stored. For informational purposes only. Actual loan terms depend on your credit profile and lender.
Monthly Payment
$508.72
Principal & interest · 60 payments · payoff Apr 2031
Total Cost of Borrowing
Interest is 14.8% of what you pay back.
Loan Summary
Affordability Guidance
Financial advisors recommend keeping your car payment (plus insurance) under 20% of take-home. The 20/4/10 rule: 20% down, 4-year max term, payment ≤ 10% of gross income.
🔒 All calculations run in your browser — no data is uploaded or stored. For informational purposes only. Actual loan terms depend on your credit profile and lender.
Amortization Schedule
60 payments · 5 years · click any year to expand
| Period | Payment | Interest | Principal | Balance | Cum. Interest |
|---|---|---|---|---|---|
| ▶Year 1(2026) | $508.72 | $1,556 | $4,549 | $21,451 | $1,556 |
| ▶Year 2(2027) | $508.72 | $1,251 | $4,853 | $16,598 | $2,808 |
| ▶Year 3(2028) | $508.72 | $926 | $5,178 | $11,420 | $3,734 |
| ▶Year 4(2029) | $508.72 | $580 | $5,525 | $5,895 | $4,314 |
| ▶Year 5(2030) | $508.72 | $210 | $5,895 | Paid off | $4,523 |
| Totals | $508.72 × 60 | $4,523 | $26,000 | — | $4,523 |
Monthly Payment
$508.72
Total interest
$4,523.20
Frequently Asked Questions
How is my monthly loan payment calculated?+
Monthly payment uses the standard amortization formula: M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments. This ensures each payment covers all accrued interest with the remainder reducing the principal balance.
How much does an extra monthly payment actually save?+
Extra principal payments reduce your outstanding balance faster, which means less balance accruing interest each month. The savings compound over time — an extra $100/month on a $25,000 personal loan at 11.99% over 36 months can save hundreds in interest and pay it off weeks sooner. Use the extra payment field to see your exact impact.
What is the difference between interest rate and APR?+
The interest rate is the base cost of borrowing expressed as an annual percentage. APR (Annual Percentage Rate) includes the interest rate plus fees (origination fees, closing costs, etc.) and reflects the true annual cost of the loan. For comparing loan offers, always compare APRs — not just interest rates. This calculator uses the interest rate you enter; if your lender quotes APR, use that number for a more conservative estimate.
How much car can I afford?+
Follow the 20/4/10 rule: put at least 20% down, finance for no more than 4 years (48 months), and keep your monthly car payment under 10% of your gross monthly income. For example, on a $60,000 gross annual salary ($5,000/mo), your car payment should be under $500/month. Use the calculator to find a vehicle price and term combination that hits that target.
Should I choose a shorter or longer loan term?+
A shorter term means a higher monthly payment but significantly less total interest paid. A longer term lowers the monthly payment but you pay far more over the life of the loan. As a rule: if you can afford the payment on a shorter term, always take it — the interest savings are substantial. Use the term presets to compare. If the monthly payment difference is small, always go shorter.
Understanding Your Loan: What the Numbers Actually Mean
Every loan — whether it is a car purchase, a personal loan to consolidate debt, student loans, or a home equity line — works on the same core math: you borrow a principal amount, pay a monthly interest charge on the outstanding balance, and reduce that balance with the remainder of your payment. The loan is fully paid off when the balance reaches zero. Understanding this mechanism is what separates borrowers who get out of debt efficiently from those who pay far more than they had to.
How amortization works — and why early payments matter most
In the first months of a loan, most of your payment goes to interest rather than principal. On a $30,000 auto loan at 6.5% for 60 months, your first payment of roughly $587 includes about $163 in interest and only $424 in principal reduction. By month 55, that same $587 payment includes just $12 in interest — almost entirely principal. This front-loading of interest is why paying extra in the early years of a loan saves the most money. Use the amortization schedule above to see exactly how this plays out for your loan.
Auto loan calculator: the 20/4/10 rule
Financial advisors consistently recommend the 20/4/10 rule for car purchases: put at least 20% down, take no more than a 4-year (48-month) term, and keep the monthly payment at or below 10% of your gross monthly income. A shorter term means you pay significantly less in total interest and avoid being underwater on the vehicle (owing more than it is worth). Car values depreciate rapidly — especially in the first three years — and a long 72- or 84-month loan means you are likely paying interest on an asset that is worth less than what you owe for most of that term.
Personal loan calculator: when it makes sense
Personal loans are best used for debt consolidation (replacing high-rate credit card balances with a single fixed payment at a lower rate), home improvements, major expenses, or emergency expenses where a credit card would charge 20%+ APR. The break-even point is straightforward: if the personal loan rate is lower than what you are currently paying and you can commit to the fixed payment schedule, it almost always makes financial sense to consolidate. Use this calculator to verify the total cost difference between your current debt and a personal loan offer.
Student loan calculator: income vs payment planning
Federal student loans are currently fixed at 6.54% for undergraduate borrowers (2025–26 academic year). The standard 10-year repayment term minimizes total interest but produces the highest monthly payment. Income-driven repayment plans cap payments at 5–10% of discretionary income but extend the term significantly, often resulting in much more total interest paid (though potentially forgiven under IDR forgiveness programs after 20–25 years). Private student loans carry variable or fixed rates and have no income-driven options — compare refinancing offers carefully.
The true cost of a longer loan term
A longer loan term lowers the monthly payment but substantially increases the total interest cost. Consider a $25,000 personal loan at 11.99%: a 24-month term costs $1,349/month and $7,380 in total interest. A 60-month term costs $556/month — far more manageable — but costs $8,360 in total interest, and you are paying for 3 more years. The monthly savings of $793 come at the cost of $980 in extra interest and 36 additional payments. Always compare the total cost of borrowing, not just the monthly payment, before choosing a loan term.