Loan Calculator
Loan type
Monthly Payment
$494.64
Total Interest
$2,807.04
Total Cost
$17,807.04
Amortization Schedule
| Month | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $350.89 | $143.75 | $14,649.11 |
| 2 | $354.25 | $140.39 | $14,294.86 |
| 3 | $357.65 | $136.99 | $13,937.21 |
| 4 | $361.08 | $133.56 | $13,576.13 |
| 5 | $364.54 | $130.10 | $13,211.60 |
| 6 | $368.03 | $126.61 | $12,843.57 |
| 7 | $371.56 | $123.08 | $12,472.01 |
| 8 | $375.12 | $119.52 | $12,096.90 |
| 9 | $378.71 | $115.93 | $11,718.19 |
| 10 | $382.34 | $112.30 | $11,335.84 |
| 11 | $386.00 | $108.64 | $10,949.84 |
| 12 | $389.70 | $104.94 | $10,560.14 |
| 13 | $393.44 | $101.20 | $10,166.70 |
| 14 | $397.21 | $97.43 | $9,769.49 |
| 15 | $401.02 | $93.62 | $9,368.47 |
| 16 | $404.86 | $89.78 | $8,963.61 |
| 17 | $408.74 | $85.90 | $8,554.87 |
| 18 | $412.66 | $81.98 | $8,142.22 |
| 19 | $416.61 | $78.03 | $7,725.61 |
| 20 | $420.60 | $74.04 | $7,305.00 |
| 21 | $424.63 | $70.01 | $6,880.37 |
| 22 | $428.70 | $65.94 | $6,451.67 |
| 23 | $432.81 | $61.83 | $6,018.86 |
| 24 | $436.96 | $57.68 | $5,581.90 |
Prepayment / Part-payment
Mortgage Interest Deduction
In the US, mortgage interest on up to $750,000 of home-acquisition debt is deductible — but only if you itemize deductions instead of taking the standard deduction. The estimate below assumes a 22% marginal tax bracket; your actual benefit depends on your bracket and whether you itemize.
interest saved: $329.08 / yrs
Compare scenarios
Scenario A | Scenario B | |
|---|---|---|
| Loan Amount | ||
| Annual Interest Rate (APR) | ||
| Loan Term (yrs) | ||
| Monthly Payment | $494.64 | $501.80 |
| Total Interest | $2,807.04 | $3,064.96 |
| Total Cost | $17,807.04Best value | $18,064.96 |
Loan Calculator
A loan calculator shows you exactly what a loan will cost before you sign anything. Enter the loan amount, APR, and repayment term to instantly see your monthly payment, total interest, and a full amortization schedule. Use the extra payment field to model how much faster you can pay off the loan — and how much interest you'll save.
How Loan Payments Are Calculated
US personal loans use simple interest amortization. Each payment is the same amount, but the split between principal and interest shifts over time — early payments are mostly interest, later payments mostly principal. The calculation uses the standard amortization formula:
Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1]
Where P = loan amount, r = monthly rate (APR ÷ 12 ÷ 100), n = number of payments.
Worked Example
You borrow $15,000 at 11.5% APR over 3 years (36 months).
- Monthly payment: $493.96
- Total repaid: $17,782.56
- Total interest: $2,782.56
Adding an extra $100/month cuts the payoff to about 27 months and saves around $490 in interest.
Typical Personal Loan Rates in the US (2024–2025)
| Loan Type | Typical APR Range |
|---|---|
| Personal loan (excellent credit) | 7% – 12% |
| Personal loan (good credit) | 12% – 20% |
| Personal loan (fair credit) | 20% – 30% |
| Auto loan (new car) | 6% – 9% |
| Home improvement loan | 8% – 16% |
Origination Fees & APR Disclosure
Many US personal and auto loans carry an origination fee (typically 1%–8%), often deducted from the amount you receive. Under Regulation Z (Truth in Lending Act), the APR must fold these mandatory fees in, so it is always higher than the headline interest rate. Compare offers on APR, not the nominal rate.
Prepayment Penalties
Most US personal loans have no prepayment penalty, so extra payments go straight to principal. Some auto loans and older mortgages do — check your loan agreement for a "prepayment" clause before making a large lump-sum payment.
Credit & GAP Insurance
Lenders may offer credit life, disability, or GAP insurance (which covers the shortfall if a financed vehicle is totaled). These are optional add-ons; decline them unless they fit your situation, as they increase the financed balance and total interest.
Recent Rate Context (2025–2026)
Consumer loan rates follow the federal funds rate set by the Federal Reserve. After the 2023–2024 highs, the Fed began easing, and auto and personal loan rates have softened modestly into 2025–2026. Your credit score remains the biggest single factor — see the current target rate at the Federal Reserve (federalreserve.gov).
What is APR on a personal loan?
APR (Annual Percentage Rate) represents the true yearly cost of a loan, including interest and any mandatory fees such as origination fees. Under the Truth in Lending Act (TILA), all US lenders must disclose the APR before you sign a loan agreement. The APR is always higher than the stated interest rate if the loan has fees. When comparing loans, always compare APRs — not just the interest rate.
How does an amortization schedule work?
An amortization schedule is a complete table of every payment you will make over the life of the loan. Each row shows the payment number, how much of that payment goes to interest, how much reduces the principal, and the remaining balance. In the early months of a loan, most of each payment is interest. By the final months, almost the entire payment goes to principal. Our calculator shows the full schedule inline — no extra clicks required.
Does making extra payments actually save money?
Yes — significantly. Because interest accrues on the remaining balance, any extra payment directly reduces that balance, which means less interest accrues in future months. On a $15,000 loan at 11.5% APR over 3 years, adding just $100 extra per month saves about $490 in interest and pays off the loan 9 months early. Use the extra payment field above to model your own scenario.
What credit score do I need for a personal loan?
Most traditional lenders (banks, credit unions) require a FICO score of at least 670 for competitive rates. Scores above 740 typically qualify for the best advertised APRs. Online lenders may approve applicants with scores as low as 580–600, but at rates of 25–35% APR. Credit unions are often the best source for members with fair credit — they are member-owned and typically offer rates 2–5% lower than banks.
What is the difference between a personal loan and a line of credit?
A personal loan provides a lump sum upfront with a fixed monthly payment and a set payoff date — ideal for one-time expenses like debt consolidation or a home improvement project. A personal line of credit (or HELOC) lets you borrow up to a limit, repay, and borrow again — like a credit card with a lower rate. If you know exactly how much you need, a personal loan is usually cheaper; if you need flexible access to funds over time, a line of credit may suit better.
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. The APR also includes mandatory fees such as origination charges, so it reflects the true yearly cost. Two loans with the same interest rate can have different APRs — always compare the APR.
Does paying off a loan early hurt my credit score?
Paying off an installment loan early generally does not hurt your score and saves interest. It may cause a small, temporary dip because you close an active account, but the long-term effect of lower debt is positive.
How much does my credit score affect my auto loan rate?
A lot. Borrowers with excellent scores (740+) often qualify for the lowest advertised rates, while subprime borrowers can pay several times more. Even a 2–3 percentage-point difference adds thousands in interest over a 5–6 year auto loan.
US Consumer Lending Regulation
Personal loans are regulated at both federal and state level. The Truth in Lending Act (TILA) requires lenders to disclose APR, total finance charges, and payment schedule before signing. The Consumer Financial Protection Bureau (CFPB) supervises large lenders and handles consumer complaints. State usury laws cap interest rates — some states (e.g. New York) cap at 16% for civil usury, while others have no cap. Always check your state's specific rules.