Loan payment calculator (auto and personal)

How this calculator works

This calculator uses the standard fixed-rate amortization formula. It takes the loan amount, the rate and the term in months, and finds the level payment that pays the loan off exactly by the last month. Enter the rate from your own loan offer. It then builds a schedule. Each month, interest is the balance times one twelfth of the yearly rate, and the rest of the payment lowers the balance. The table rolls those months up by year, and the totals show interest paid and the total of all payments.

Assumptions: a fixed rate, the same payment every month, and every payment made on time. It does not include fees, add-ons such as extended warranties or gap coverage, sales tax on a vehicle, or the effect of paying extra. The payoff date assumes the term starts this month. Loans with variable rates or balloon payments work differently.

How this affects buying a home: the monthly payment on an auto or personal loan counts in your debt-to-income ratio, the figure lenders use to check what you can afford. A new loan also adds a credit inquiry and a new account to your report. If you plan to buy a home soon, it can help to wait on a new loan until after closing, or to ask a loan officer how it would change your numbers first.

Example: enter a $25,000 loan amount, a 60-month term and the rate from your offer. Then try 48 months to compare the payment and total interest.

Related: Debt-to-income calculator · Debt-free date calculator · Home affordability calculator