Calculate monthly payments for personal, auto, and other loans with detailed amortization
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The interest rate is the cost of borrowing the principal loan amount. APR (Annual Percentage Rate) includes the interest rate plus other costs such as broker fees, discount points, and closing costs, expressed as a yearly rate.
Extra payments go directly toward the principal balance, reducing the total interest paid and shortening the loan term. Even small extra payments can save thousands in interest over the life of the loan.
Generally, a credit score of 740+ qualifies for the best rates. Scores of 670-739 get good rates, 580-669 get fair rates with higher interest, and below 580 may have difficulty qualifying or face very high rates.
Shorter terms mean higher monthly payments but less total interest paid. Longer terms have lower monthly payments but cost more in total interest. Choose based on your monthly budget and long-term financial goals.
Amortization is the process of paying off a loan through regular payments. Early payments go mostly toward interest, while later payments go mostly toward principal. An amortization schedule shows this breakdown for each payment.
Most loans allow early payoff, but check for prepayment penalties. Paying off early saves interest but consider if the money could earn more invested elsewhere, especially for low-interest loans.