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Loan Calculator
Enter the amount, rate and term of any fixed-rate loan. Add an extra monthly payment to see how much sooner the loan ends and how much interest you avoid.
Example
A $20,000 loan at 8% over 5 years costs $405.53 a month and $4,331.67 in interest. Paying an extra $100 a month clears it in 3 years 11 months and saves $1,036.37.
How the loan calculator works
The payment comes from the standard loan formula, M = P × i / (1 − (1 + i)−N), with P the amount borrowed, i the monthly rate and N the number of payments.
Each month, interest is charged on what you still owe, and the rest of the payment reduces the balance. An extra payment goes entirely to the balance, so every later month is charged less interest.
That is why small extra payments early in a loan save more than large ones near the end.
Common questions
Can I always make extra payments?
Not always for free. Some loans charge a fee for early repayment. Check your loan agreement, and ask the lender to apply extra money to the principal.
What is the difference between interest rate and APR?
APR includes the interest rate plus certain fees, expressed as a yearly rate. Use the APR here if you want the result to reflect those fees.
Does this work for car and student loans?
Yes, for any loan with a fixed rate and equal monthly payments. Loans with variable rates or payment pauses will differ.