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Calculate your monthly loan payment with extra payment comparison.
โน๏ธAbout This Calculator
Before you sign for a $30,000 car loan at 7% over 60 months, know this: you'll pay $5,640 in interest. That's almost $100/month going straight to the bank, not toward your car. But here's the thing most people miss โ adding just $50 extra per month cuts the loan by 6 months and saves $682. This calculator shows you the standard payment, what happens when you add extra, and a year-by-year amortization schedule so you can see exactly how much of each payment goes to interest vs. principal. Works for auto loans, personal loans, student debt, or any fixed-rate installment loan.
Frequently Asked Questions
How is the monthly payment calculated?
The formula is M = P[r(1+r)^n] / [(1+r)^n-1]. P is the loan amount, r is the monthly interest rate (annual รท 12), n is total number of payments. On a $20,000 loan at 6% for 5 years: r = 0.005, n = 60, monthly payment = $386.66. You'll pay $23,199 total, meaning $3,199 goes to interest.
What's the real cost difference between 3 and 6 years?
Take a $25,000 loan at 7%. Over 36 months: $772/month, $2,778 in interest. Over 72 months: $426/month, $5,662 in interest. You save $346/month but pay $2,884 more over the life of the loan. That's the trap of long terms โ the monthly payment feels easier but the total cost balloons.
How much can extra payments save me?
On a $20,000 loan at 6.5% for 5 years, paying $100 extra per month saves $777 in interest and pays off the loan 12 months early. The earlier you start making extra payments, the bigger the savings โ because early payments are mostly interest. Reducing principal early means every remaining payment has less interest attached.
What is amortization?
Your first payment on a $20,000 loan at 6% splits roughly $100 to interest and $287 to principal. Your last payment? About $2 to interest and $385 to principal. That gradual shift is amortization. It's why throwing extra money at a loan in year 1 saves way more than the same extra money in year 4.
What interest rate can I expect?
It depends on your credit score and loan type. Auto loans: 5-7% with good credit, 10-15% with fair. Personal loans: 8-12% with good credit, 20-36% with poor. Student loans: federal rates are set by Congress (currently around 5.5%), private varies widely. Always check the APR, not just the rate โ APR includes origination fees some lenders charge.
Should I refinance my current loan?
Quick math: if your current rate is 9% and you can refinance at 5%, on a $15,000 balance with 3 years left, you'd save about $1,000 in interest. But watch for refinance fees โ if they charge $300-500, you're still ahead. The break-even point is usually 2-4 months. If you'll keep the loan longer than that, refinancing makes sense.
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For informational purposes only. Calculator results are estimates based on the inputs you provide. This is not financial, investment, tax, or legal advice. Consult a qualified financial professional before making major financial decisions.