Does this calculator account for origination fees?

No. Add any origination fee to the principal before calculating. For example, a $10,000 loan with a 3% origination fee becomes $10,300.

What's a 'simple loan' versus other loans?

A simple-interest installment loan: fixed APR, fixed term, fixed monthly payments, principal amortizes over the term. This is the most common consumer loan structure (auto loans, personal loans, student loans, mortgages). Contrast with: revolving credit (credit cards, HELOCs), balloon loans (small payments then a large lump sum at end), interest-only loans (pay only interest until a specific date), variable-rate loans (rate changes with index). For most household loans, this calculator's structure is correct.

How do I calculate the loan payoff if I want to pay it off early?

Loan payoff at any point = remaining principal balance + accrued interest since last payment. Most lenders provide a 'payoff quote' on request, valid for 10-15 days. The amount equals your scheduled payments minus what's already been paid (principal portion only). Pre-payment penalties: rare on personal loans, sometimes on mortgages (usually only in first 3-5 years), illegal on federal student loans. Always check the loan documents before paying off; some lenders charge a small payoff-quote fee but it's recoverable through interest savings.

What's the difference between a fixed-rate and variable-rate loan?

Fixed-rate: APR stays the same for the entire loan term. Predictable monthly payment. Standard for most consumer loans (auto, personal, student loans, fixed-rate mortgages). Variable-rate: APR adjusts periodically based on an index (Prime Rate, SOFR, etc.) plus a margin. Can start lower than fixed but rises if rates rise. Common in: HELOCs, ARMs (adjustable-rate mortgages), some private student loans. For most borrowers, fixed-rate is safer. Variable-rate makes sense only if: rates are expected to fall, you'll pay off quickly, or you're using leverage on appreciating assets.

How can I compare loan offers from different lenders?

Compare APR (not advertised rate — APR includes fees), total cost over the term (the calculator's 'total interest' line), monthly payment, prepayment penalties, late fees, and fees if missed payments. Don't focus only on monthly payment — a $5/month difference over 7 years is $420 of total cost. Use this calculator with each offer's APR; the lowest total interest wins, assuming similar monthly payments. Get pre-qualified at 3-5 lenders (soft credit checks, no score impact); compare the formal Loan Estimate documents, not just sales emails.

What is loan amortization?

Amortization = the schedule of how each payment splits between interest and principal. Early in a loan, most of each payment is interest because the principal balance (on which interest is calculated) is highest. Later, more goes to principal. Example: $10K loan at 6% over 3 years, monthly $304.22. First payment: $50 interest, $254.22 principal. Last payment: $1.51 interest, $302.71 principal. View an amortization schedule for any loan to see this curve. The 'shape' of the curve is steeper for higher-rate / longer-term loans.

Money & Finance · Free tool

Simple Loan Calculator

Calculate monthly loan payments using only amount, rate, and term instantly in your browser. Get clean numbers with no jargon for free and no sign-up.

Updated June 2026

Loan amount ($)

Rate (%)Term (years)

Extra monthly payment ($) (optional — pays down principal faster)

Monthly payment

$304.22

Total paid

$10,951.90

Total interest

$951.90

Payoff date

Jun 2029

Payoff timeline

36 mo

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What it does

A simple loan calculator with three inputs and three outputs. Enter the amount borrowed, the APR, and the term in years. See the monthly payment, the total amount paid, and the total interest. No ads in the middle of the tool, no jargon, no tricks.

Useful for any fixed-rate installment loan where you just want a fast answer — loaning money between family, estimating a personal loan, or doing a quick sanity check on a lender’s quote.

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Example input & output

Input

Amount: $10,000
APR: 6%
Term: 3 years

Output

Monthly: $304.22
Total paid: $10,952
Total interest: $952

A 6% personal loan is roughly 3× cheaper than a 22% credit card over the same period.

How to use it

Enter the loan amount.
Enter the APR.
Enter the term in years.
Read monthly, total paid, and total interest.

When to use this tool

Any fixed-rate installment loan.
Teaching someone how loan math works.

When not to use it

Loans with fees or points (add them to principal first).
Variable-rate or balloon-payment loans.

Common use cases

Fast back-of-the-envelope loan math.
Family loan agreements where you need a payment schedule.
Double-checking a lender’s quoted monthly payment.

Frequently asked questions

Does this calculator account for origination fees?: No. Add any origination fee to the principal before calculating. For example, a $10,000 loan with a 3% origination fee becomes $10,300.
What's a 'simple loan' versus other loans?: A simple-interest installment loan: fixed APR, fixed term, fixed monthly payments, principal amortizes over the term. This is the most common consumer loan structure (auto loans, personal loans, student loans, mortgages). Contrast with: revolving credit (credit cards, HELOCs), balloon loans (small payments then a large lump sum at end), interest-only loans (pay only interest until a specific date), variable-rate loans (rate changes with index). For most household loans, this calculator's structure is correct.
How do I calculate the loan payoff if I want to pay it off early?: Loan payoff at any point = remaining principal balance + accrued interest since last payment. Most lenders provide a 'payoff quote' on request, valid for 10-15 days. The amount equals your scheduled payments minus what's already been paid (principal portion only). Pre-payment penalties: rare on personal loans, sometimes on mortgages (usually only in first 3-5 years), illegal on federal student loans. Always check the loan documents before paying off; some lenders charge a small payoff-quote fee but it's recoverable through interest savings.
What's the difference between a fixed-rate and variable-rate loan?: Fixed-rate: APR stays the same for the entire loan term. Predictable monthly payment. Standard for most consumer loans (auto, personal, student loans, fixed-rate mortgages). Variable-rate: APR adjusts periodically based on an index (Prime Rate, SOFR, etc.) plus a margin. Can start lower than fixed but rises if rates rise. Common in: HELOCs, ARMs (adjustable-rate mortgages), some private student loans. For most borrowers, fixed-rate is safer. Variable-rate makes sense only if: rates are expected to fall, you'll pay off quickly, or you're using leverage on appreciating assets.
How can I compare loan offers from different lenders?: Compare APR (not advertised rate — APR includes fees), total cost over the term (the calculator's 'total interest' line), monthly payment, prepayment penalties, late fees, and fees if missed payments. Don't focus only on monthly payment — a $5/month difference over 7 years is $420 of total cost. Use this calculator with each offer's APR; the lowest total interest wins, assuming similar monthly payments. Get pre-qualified at 3-5 lenders (soft credit checks, no score impact); compare the formal Loan Estimate documents, not just sales emails.
What is loan amortization?: Amortization = the schedule of how each payment splits between interest and principal. Early in a loan, most of each payment is interest because the principal balance (on which interest is calculated) is highest. Later, more goes to principal. Example: $10K loan at 6% over 3 years, monthly $304.22. First payment: $50 interest, $254.22 principal. Last payment: $1.51 interest, $302.71 principal. View an amortization schedule for any loan to see this curve. The 'shape' of the curve is steeper for higher-rate / longer-term loans.

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