Loans & Financing
Loan Calculator
Estimate your monthly payments, total interest charges, and overall repayment cost.
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Loan Details
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Estimated Payment
Based on a $10,000.00 loan at 6.50% APR over 5 years
- Loan Principal
- $10,000.00
- Total Interest
- $1,739.69
- Total Payments
- $11,739.69
- Principal (85.2%)$10,000.00
- Interest (14.8%)$1,739.69
You'll pay about $1,739.69 in interest over the life of this loan.
| Metric | Current | + $50.00/mo |
|---|---|---|
| Monthly Payment | $195.66 | $245.66 |
| Payoff Time | 5 years | 3 yr 11 mo |
| Total Interest | $1,739.69 | $1,327.76 |
| Interest Saved | — | $411.93 |
Comparison assumes the extra $50.00 is paid every month and the loan is paid off once the remaining balance reaches zero.
This estimate assumes a fixed interest rate and equal monthly payments. It does not include taxes, fees, insurance, or other lender charges.
Balance Breakdown
- Loan Amount
- $10,000.00
- Total Interest
- $1,739.69
- Total Paid
- $11,739.69
- Payoff Time
- Sep 2031
Year-by-Year Breakdown
See how each year's payments are split between paying down principal and covering interest charges.
| Year | Principal Paid | Interest Paid | Ending Balance |
|---|---|---|---|
| Year 1 | $1,749.45 | $598.49 | $8,250.55 |
| Year 2 | $1,866.61 | $481.33 | $6,383.94 |
| Year 3 | $1,991.62 | $356.32 | $4,392.32 |
| Year 4 | $2,125.00 | $222.93 | $2,267.32 |
| Year 5 | $2,267.32 | $80.62 | $0.00 |
Common Scenarios
See how typical starting points compare side by side.
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Frequently Asked Questions
Answers to common questions about this calculator.
What increases your total loan balance?
Your total loan balance and overall borrowing cost increase whenever financing charges accumulate faster than principal is repaid. Key factors include higher interest rates (APR), longer loan terms, and capitalized fees or penalties added directly onto the principal balance.
What is a secured loan?
A secured loan requires physical collateral—such as a vehicle, home, or savings account—to guarantee the debt. Because collateral reduces the lender's financial risk, secured loans generally offer lower interest rates, larger loan amounts, and more flexible qualification terms. Common examples include auto loans and mortgages.
What is an unsecured loan?
An unsecured loan is not backed by collateral and relies entirely on your credit score, income history, and debt-to-income ratio. Because the lender assumes greater loss risk without property to claim upon default, unsecured loans typically carry higher interest rates and lower borrowing limits. Common examples include personal loans and student loans.
How the Calculation Works
Understand the formula and variables behind the numbers.
Standard fixed-rate installment loans use the standard loan amortization formula to compute equal periodic payments over the life of the loan. Each payment is split between paying down accrued interest and reducing the principal balance.
Amortization Formula
PMT = (P · r · (1 + r)^n) / ((1 + r)^n − 1)
- PMT = Monthly payment amount
- P = Loan principal amount
- r = Periodic interest rate (Annual APR divided by 12 months)
- n = Total number of monthly payments (Term in years multiplied by 12)
Key Loan Variables
- Principal Amount: The total amount borrowed from the lender before interest or fees are applied.
- Annual Percentage Rate (APR): The yearly cost of borrowing funds, expressed as a percentage rate.
- Loan Term: The scheduled timeframe across which all principal and interest payments must be fulfilled.
- Total Interest Paid: The cumulative cost of borrowing money beyond the original principal balance over the entire loan term.
For deeper mathematical walkthroughs, read our guides on What is PMT in Financial Calculations? or How Loan Amortization Schedules Work.
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