Loan Payment Calculator

Calculate your monthly loan payments and see exactly how your loan breaks down over time.

Understanding Your Loan

💡 How Loans Work

When you take out a loan, you borrow money and agree to pay it back over time with interest. Your monthly payment covers both the principal (original loan amount) and interest charges.

📊 Principal vs Interest

Early payments go mostly toward interest. As you pay down the loan, more of each payment goes toward principal. This is called amortization.

💰 Common Loan Types

  • Auto Loans: 3-7 years, 4-7% APR
  • Personal Loans: 2-7 years, 6-36% APR
  • Student Loans: 10-25 years, 3-13% APR

🎯 Tips for Borrowers

  • Shop around for the best interest rate
  • Consider shorter loan terms to save on interest
  • Make extra payments toward principal when possible
  • Check your credit score before applying