Personal Loan Calculator — Monthly Payment

Fixed-rate loan payments are calculated using an amortization formula that considers three inputs: the principal (loan amount), the annual interest rate, and the number of payments (term in months). Early in the loan, most of your payment goes toward interest. As the principal shrinks, a larger share goes toward the balance. This is why extra payments early on can dramatically reduce total interest.

On a $20,000 loan over 5 years, the difference between a 6% and 8% rate is roughly $1,100 in extra interest. Over longer terms the gap widens even further. Shopping for the best rate — through banks, credit unions, and online lenders — is one of the most impactful things you can do before borrowing. Pre-qualification with a soft credit pull lets you compare offers without affecting your credit score.

Making even small extra payments toward your principal each month can shave months or years off your loan and save significant interest. For example, adding $50 per month to a $15,000 loan at 7% for 5 years can save over $400 in interest and pay off the loan 6 months early. Before making extra payments, confirm your lender applies them to the principal and doesn't charge a prepayment penalty.