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💰 Loan Calculator

Calculate payments for personal, auto, student, and other loans

📋 Loan Details

📊 Loan Summary

Monthly Payment
$0
Total Interest
$0
Total Amount
$0
Loan Amount
$0

Interest Rate: 0%

Loan Term: 0 months

📈 Payment Schedule

See how your loan balance decreases over time with each payment.

💡 Loan Types Comparison

🏦 Personal Loans

Rate Range: 6-36%
Term: 2-7 years
Purpose: Debt consolidation, home improvement, major purchases

🚗 Auto Loans

Rate Range: 3-10%
Term: 3-7 years
Features: Lower rates, secured by vehicle

🎓 Student Loans

Federal Rate: 5-7%
Private Rate: 4-14%
Features: Flexible repayment options

🏠 Home Improvement

Rate Range: 6-20%
Term: 2-12 years
Features: May qualify for tax deductions

How to Use This Loan Calculator

Step-by-Step Guide:

  1. Enter the total amount you want to borrow
  2. Input the annual percentage rate (APR) offered by the lender
  3. Select the loan term in months or years
  4. Choose payment frequency (monthly, bi-weekly, etc.)
  5. Review the calculated monthly payment and total interest cost

Understanding Your Results

Your calculation result provides important insights for making informed decisions. The loan calculator takes into account loan amount, interest rate, loan term, payment frequency to give you an accurate estimate that you can use for planning and budgeting purposes.

Tips for Accurate Calculations

  • Always use the most current and accurate data available
  • Double-check your inputs for any typing errors
  • Consider consulting with a professional for complex financial decisions
  • Use this calculator as a starting point for your research and planning

Why Loan Calculator Matters

Loan calculations are essential for understanding the true cost of borrowing money, whether for personal expenses, auto purchases, or debt consolidation. Proper analysis helps you compare loan offers, budget for payments, and make informed financial decisions.

When to Use This Calculator

  • Comparing personal loan offers from different lenders
  • Planning for auto loan payments when car shopping
  • Evaluating debt consolidation loan benefits
  • Understanding the impact of different loan terms on total cost
  • Budgeting for major purchases requiring financing

Common Mistakes to Avoid

  • Focusing only on monthly payment amount instead of total loan cost
  • Not comparing APR versus advertised interest rates
  • Ignoring additional fees like origination fees and closing costs
  • Choosing longer terms without considering total interest impact
  • Not factoring in early payment penalties or prepayment options

Real-World Examples

Example 1: Auto Loan Decision

Situation: Sarah needs a $25,000 car loan and is comparing 3-year versus 5-year terms, both at 6.5% APR.
Using the calculator: 3-year: $765/month, total interest $2,540. 5-year: $488/month, total interest $4,280.
Result interpretation: The 5-year loan saves $277 per month but costs an extra $1,740 in total interest.
Next steps: Sarah should choose based on her budget priorities: cash flow (5-year) versus total cost savings (3-year).

Frequently Asked Questions

What's the difference between interest rate and APR?

The interest rate is the cost of borrowing the principal loan amount. APR (Annual Percentage Rate) includes the interest rate plus additional fees and costs, giving you the true annual cost of the loan. Always compare APRs when shopping for loans.

Should I choose a shorter or longer loan term?

Shorter terms typically mean higher monthly payments but significantly less total interest paid. Longer terms offer lower monthly payments but cost more over time. Choose based on your monthly budget and total cost tolerance.

How do extra payments affect my loan?

Extra payments applied to principal reduce both the total interest you'll pay and the loan term. Even small additional payments can save hundreds or thousands of dollars over the life of the loan.