Loan Calculator
Calculate loan payments and amortization schedule
How to use Loan Calculator
Calculate monthly loan payments and full amortization schedule. Compare different rates and terms. Free online loan calculator.
When do you need a loan calculator?
Before taking any loan — personal, auto, student, or business — you need to know the true cost of borrowing, not just the headline interest rate. A loan calculator reveals the full picture.
- Personal loans: Compare offers from different banks — a lower interest rate with a longer term may cost more in total interest than a higher rate over a shorter period.
- Car financing: Dealer financing often advertises monthly payments without emphasizing the total cost. Calculate the effective APR and total interest to compare with other options.
- Student loans: Model how long it will take to repay a student loan on different income-based repayment plans, and how much interest accumulates during study.
- Business loans: Assess whether a business loan at a given interest rate is worth it by comparing the monthly repayment against the projected revenue generated by the investment.
- Debt consolidation: Compare the monthly payment and total interest of consolidating multiple debts into one loan versus paying them separately.
APR vs interest rate: The interest rate is the cost of the loan excluding fees. APR (Annual Percentage Rate) includes fees and is the true cost of borrowing. Always compare APRs, not just interest rates, when evaluating loan offers.
Frequently Asked Questions
What is the difference between APR and interest rate?
The interest rate is the annual cost of the loan principal only. APR includes all fees — origination fees, mortgage insurance, broker fees — expressed as an annual percentage. APR is always equal to or higher than the interest rate. Use APR to compare loans across different lenders.
What is a good interest rate for a personal loan?
It depends on your credit score and the economic environment. In Europe, personal loans typically range from 5-20% APR. In the US, 6-12% is considered competitive for borrowers with good credit. Rates above 20% are generally considered high-cost borrowing — explore alternatives.
How does my credit score affect the loan rate?
Lenders use credit scores to assess risk. Higher scores (750+ in most systems) qualify for lower rates — potentially 3-5% cheaper than for borrowers with poor credit. A difference of 5% on a €20,000 loan over 5 years is approximately €2,800 in extra interest.
What is an early repayment charge?
Some lenders charge a fee if you pay off a loan before the agreed term — typically 1-2 months' interest. Check loan terms for early repayment charges before making overpayments. On variable rate loans, overpayments are usually free.
What is the difference between secured and unsecured loans?
A secured loan is backed by an asset (home, car) which the lender can repossess if you default. It typically offers lower rates due to lower lender risk. An unsecured loan has no collateral — higher rates, faster processing, no risk to assets. Personal loans and credit cards are unsecured.
Loan calculator vs mortgage calculator vs credit card interest calculator
A personal loan calculator models fixed-term installment loans (1-7 years) with equal monthly payments. A mortgage calculator handles the same math but for 15-30 year property loans. A credit card interest calculator models revolving credit — the balance can go up and down, minimum payments keep you paying mostly interest, and the effective APR is typically much higher (20-30%). For comparing total borrowing costs across different products, always use the APR and calculate total interest paid over the full term.