Loan Calculator 2026
Calculate your monthly payment, total interest, and full amortization schedule for any personal, auto, or home equity loan. See how extra payments cut your payoff time.
Quick Answer
A $25,000 personal loan at 8.5% APR for 5 years costs $513/month and $5,788 in total interest. Paying an extra $100/month cuts the payoff to 48 months and saves $760 in interest. At 12% APR, the same loan costs $556/month and $8,360 in total interest — which is why interest rate shopping matters.
Loan Details
Personal loans: 8–20% APR (2026 avg: 12.3%)
Loan Amortization Results
Monthly Payment
$512.91
Total Interest
$5,775
Total Cost
$30,775
Amortization Schedule (first 12 months)
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $512.91 | $335.83 | $177.08 | $24,664 |
| 2 | $512.91 | $338.21 | $174.70 | $24,326 |
| 3 | $512.91 | $340.60 | $172.31 | $23,985 |
| 4 | $512.91 | $343.02 | $169.90 | $23,642 |
| 5 | $512.91 | $345.45 | $167.47 | $23,297 |
| 6 | $512.91 | $347.89 | $165.02 | $22,949 |
| 7 | $512.91 | $350.36 | $162.56 | $22,599 |
| 8 | $512.91 | $352.84 | $160.07 | $22,246 |
| 9 | $512.91 | $355.34 | $157.57 | $21,890 |
| 10 | $512.91 | $357.86 | $155.06 | $21,533 |
| 11 | $512.91 | $360.39 | $152.52 | $21,172 |
| 12 | $512.91 | $362.94 | $149.97 | $20,809 |
Monthly payment uses standard amortization formula. Early payments are interest-heavy; later payments shift toward principal.
Monthly Payments by Loan Amount & Term
At 8.5% APR. Standard amortization.
| Loan Amount | 3 Years | 5 Years | 7 Years |
|---|---|---|---|
| $5,000 | $158 | $103 | $78 |
| $10,000 | $315 | $206 | $157 |
| $15,000 | $473 | $308 | $235 |
| $25,000 | $789 | $514 | $391 |
| $50,000 | $1,578 | $1,028 | $783 |
Frequently Asked Questions
How do I calculate my monthly loan payment?
Monthly payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P = loan amount, r = monthly interest rate (annual rate ÷ 12), n = total number of monthly payments (years × 12). Example: $25,000 at 8.5% APR for 5 years: r = 0.085/12 = 0.00708, n = 60. Payment = $25,000 × [0.00708 × (1.00708)^60] / [(1.00708)^60 - 1] = $513/month. Total paid: $30,788. Total interest: $5,788.
What is a good personal loan interest rate in 2026?
Average personal loan rates in 2026: excellent credit (760+) 8–11% APR, good credit (700–759) 11–15% APR, fair credit (640–699) 15–24% APR, poor credit (<640) 24–36% APR. Credit unions typically offer 1–3% lower rates than banks. The best personal loan rates in 2026 start around 6.5–7% APR for borrowers with excellent credit and strong income. Compare at least 3 lenders before accepting.
How much does an extra $100/month payment save on a loan?
On a $25,000 loan at 8.5% for 5 years (base payment $513/month): adding $100/month = $613/month. You'd pay off in 48 months instead of 60 — saving 12 payments and approximately $760 in interest. On a larger loan like $200,000 at 7% for 30 years (base $1,331/month): adding $100 saves $24,700 in interest and cuts 5 years off the loan. Extra payments are most powerful early in the loan when the balance is highest.
What is amortization?
Amortization is the process of paying off a loan through scheduled payments. Each payment is split between interest and principal. Early in a loan, most of your payment goes to interest (because the balance is high). As you pay down the balance, more goes to principal. This is why paying off a 30-year mortgage early saves so much — those first payments are nearly all interest. An amortization schedule shows exactly how each payment is allocated month by month.
Should I choose a shorter or longer loan term?
Shorter loan term: higher monthly payments, less total interest, build equity faster. Longer loan term: lower monthly payments, more total interest, more cash flow flexibility. Example: $25,000 at 8.5% — 3 years: $790/month, total interest $3,440. 5 years: $513/month, total interest $5,788. 7 years: $390/month, total interest $8,755. If you can comfortably afford the higher payment, shorter terms save significantly. Only choose longer terms if cash flow is tight and the lower payment is genuinely needed.
What is APR vs interest rate on a loan?
The interest rate is the cost to borrow the principal, expressed annually. APR (Annual Percentage Rate) includes the interest rate PLUS fees (origination fees, broker fees, certain closing costs), annualized over the loan term. APR is always higher than the interest rate unless there are no fees. For comparing loans, always compare APRs — a loan with a lower interest rate but high origination fee may have a higher APR (and be more expensive) than a higher-rate loan with no fees.
How much does a 1% difference in interest rate affect a loan?
On a $300,000 30-year mortgage, 1% higher rate increases your monthly payment by approximately $170 and costs $61,200 more in total interest over the life of the loan. On a $25,000 5-year auto loan, 1% higher rate adds about $12/month and $720 total. The longer the loan term and the larger the principal, the more a small rate difference costs over time.
What credit score do I need to get the best loan rates?
Lenders generally offer the lowest interest rates to borrowers with scores of 760 or higher (excellent credit). The difference between a 620 and a 760 score on a $300,000 30-year mortgage can be 1.5–2% in rate — worth $90,000–$130,000 in total interest. For personal loans, scores above 720 typically qualify for competitive rates. Auto lenders follow similar tiers, with the best rates at 720+ and prime rates at 740+.