Loan Calculator

Estimate your monthly payments and see your financing options.

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Months
Amount Financed:$0.00
Total Interest:$0
Estimated Monthly Payment$0

Cost Breakdown

Cost of Loan
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Amortization Schedule

Breakdown of your monthly principal and interest.

How to Calculate Your Simple Loan Payments

Buying a car or taking loan is a significant financial commitment. Our Simple Loan Calculator helps you estimate your monthly payments, see how much interest you will pay over the life of the loan, and determine exactly how much car you can afford.

By adjusting the loan term, interest rate, and down payment, you can find a financing plan that fits your monthly budget.

Steps to Use This Calculator

  1. Enter Loan Amount: Input the total purchase price of the car or Loan Amount (after negotiations but before tax/title fees).
  2. Input Interest Rate (APR): Enter the annual percentage rate. Your rate depends on your credit score and whether the car is new or used.
  3. Select Loan Term: Choose how many months you will be paying off the loan. Common terms are 36, 48, 60, and 72 months.
  4. Add Down Payment: Enter the amount of cash you are paying upfront or the value of your trade-in vehicle.

Understanding Your Loan Factors

Loan Term

The length of your loan affects your monthly payment and total interest. A longer term (e.g., 72 months) lowers your monthly payment but increases the total interest paid. A shorter term increases the monthly cost but saves you money in the long run.

Interest Rate (APR)

Your Annual Percentage Rate (APR) is the cost of borrowing money. New cars typically have lower interest rates than used cars. Borrowers with excellent credit scores (720+) usually qualify for the lowest rates.

What is Amortization?

Amortization refers to how your payments are split between Principal (the car's cost) and Interest (the bank's profit). In the beginning of your loan, a larger portion of your payment goes toward interest. As time goes on, more of your payment goes toward paying off the car itself.

Frequently Asked Questions

Does a down payment lower my monthly rate?

Yes. A larger down payment reduces the principal loan amount. This lowers both your monthly payment and the total interest you pay over the life of the loan.

What is a good auto loan interest rate?

Interest rates fluctuate based on the federal rate and the economy. Generally, a rate below 5% is considered excellent, while rates above 10% are common for borrowers with lower credit scores or for older used vehicles.

Should I include sales tax in the calculator?

For the most accurate estimate, you should add sales tax and title fees to the "Vehicle Price" field. These fees are usually rolled into the loan financing.

Understanding Personal Loans

A personal loan is one of the most versatile financial tools available. Unlike a mortgage (which must be used for a home) or an auto loan (for a car), a simple personal loan can be used for almost anything: debt consolidation, home renovations, medical bills, or even a wedding.

Our Simple Loan Calculator helps you estimate your monthly payments based on the principal amount, interest rate, and loan term. Because these loans are often "unsecured," the interest rates rely heavily on your creditworthiness.

Unsecured Loans

Most personal loans are unsecured. This means you don't have to put up collateral (like your house or car) to get the money. If you default, the lender cannot automatically seize your property, but your credit score will be severely damaged. Because the lender takes more risk, interest rates are higher.

Secured Loans

Secured loans require an asset as collateral, such as a savings account or a vehicle title. Because the loan is backed by value, lenders often offer lower interest rates and higher approval odds for people with lower credit scores.

Using Loans for Debt Consolidation

One of the smartest uses for a personal loan is consolidating high-interest credit card debt.

Example: If you have $10,000 on credit cards at 24% APR, moving that debt to a personal loan at 12% APR could save you thousands in interest and help you become debt-free years sooner.

However, this strategy only works if you commit to not running up the credit card balances again after paying them off.

Personal Loan FAQs

What is an Origination Fee?

Many lenders charge an upfront fee to process the loan, typically 1% to 8% of the loan amount. This is usually deducted from the funds you receive. For example, if you borrow $10,000 with a 5% fee, you might only receive $9,500.

Simple Interest vs. Compound Interest?

Most personal loans use Simple Interest, meaning you only pay interest on the principal you owe. Credit cards use Compound Interest, where you pay interest on your interest, causing debt to balloon much faster.

How long are personal loan terms?

Terms typically range from 12 to 60 months. Longer terms lower your monthly payment but increase the total interest you pay over time.