Loan Calculator Estimate payments, compare lenders, and plan payoff strategies — with real 2025 rates, fees, and amortiza...
Loan Calculator
Estimate payments, compare lenders, and plan payoff strategies — with real 2025 rates, fees, and amortization insights.
Monthly Payment Formula**:
$$PMT = P \frac{r(1+r)^n}{(1+r)^n - 1}$$
Where: • $P$ = loan amount • $r$ = monthly rate (APR ÷ 12) • $n$ = number of payments
Example** ($20K @ 12%, 60 mos): • Monthly = **$444.89** • Total interest = **$6,693** • With 3% origination fee ($600), effective APR = **13.42%**
✅ Pro Tip**: Always compare **APR** (not interest rate) — it includes fees.
⚠️ Avoid these dangerous practices:
- Precomputed interest** — interest fixed upfront; no savings for early payoff
- Universal default** — rate jumps if late on *any* credit (now banned for new loans, but legacy)
- Teaser APR** — 0% for 6 mos → 29.99% after
- Origination fee rolled in** — $600 fee on $10K = $10,600 loan → higher interest
✅ Smart Borrowing Tips**:
- Check **credit union rates** before online lenders (often 1–3% lower)
- Always get the **loan agreement in writing** before signing
- Use the 3-day rescission window for home-secured loans
| Type | Rate | $20K, 5-Yr Payment | Total Interest |
|---|---|---|---|
| Personal (Prime) | 10.5% | $432/mo | $5,920 |
| Personal (Subprime) | 24.9% | $582/mo | $14,920 |
| Auto (New) | 6.8% | $395/mo | $3,700 |
| Credit Card Avg | 20.4% | $— | — |
📉 Extra Payment Impact** ($20K @ 12%):
- $50/mo extra → **6.3 mo saved**, **$780 interest saved**
- $200/mo extra → **21.2 mo saved**, **$2,450 interest saved**
➡️ Standard Loan
“$20K personal loan @ 12% for 5 yrs — what’s my payment and APR?”
➡️ Affordability
“I make $5K/mo, $800 debt — how much can I borrow at 43% DTI?”
➡️ Extra Payments
“I owe $15K @ 12% — how much do I save with $100/mo extra?”
➡️ Refinance
“$12K @ 18.5% → 12% refi — is $200 fee worth it?” (break-even in 8 mos)
Note: Uses exact amortization math. APR includes origination fees. No prepayment penalties assumed.