Understanding your loan payment
A fixed-rate loan is repaid in equal monthly installments over a set term. Early payments are mostly interest; later payments are mostly principal. This calculator uses the standard amortization formula to show your exact monthly payment and, just as importantly, the total interest you'll pay across the whole loan.
The three levers that change your cost are the amount you borrow, the APR, and the term. A longer term lowers the monthly payment but raises total interest; a shorter term does the opposite. Try adjusting the term above to see the trade-off instantly.
How to get a lower rate
- Check your credit report and fix errors before applying.
- Get pre-qualified with several lenders to compare real APRs.
- Choose the shortest term you can comfortably afford.
- Avoid origination fees where possible — they raise your effective cost.
Loan calculator FAQ
Does a longer term save money?
It lowers the monthly payment but you pay more total interest. Shorter terms cost more per month but less overall.
Is APR the same as interest rate?
APR includes the interest rate plus certain fees, so it reflects the true annual cost and is the best number for comparison.