Loan Calculator
Enter your loan amount, interest rate, and term to see your exact monthly payment, total interest cost, APR estimate, and complete amortisation schedule. Supports personal, auto, student, and business loans.
How Loan Interest Works
The Monthly Payment Formula (PMT)
Every fixed-rate loan uses the standard annuity formula to compute the constant monthly payment:
P = principal r = monthly rate (annual rate ÷ 12) n = total number of payments
Worked Example — $25,000 Personal Loan at 6.5% for 5 Years
- Monthly rate r = 6.5% ÷ 12 = 0.5417%
- n = 5 × 12 = 60 months
- PMT = 25,000 × 0.005417 / (1 − 1.005417^−60) = $488.97/month
- Total paid = $488.97 × 60 = $29,338
- Total interest = $29,338 − $25,000 = $4,338
APR vs Interest Rate
The Annual Percentage Rate (APR) includes the interest rate plus all fees (origination, processing, closing). By law (Truth in Lending Act, Regulation Z), lenders must disclose APR. A loan quoted at 6.5% with a 2% origination fee on a 5-year term has an effective APR of approximately 7.2%. Always compare APR not just the stated rate when shopping for loans.
2026 Typical US Loan Rate Benchmarks
| Loan Type | Excellent Credit (750+) | Good Credit (690–749) | Fair Credit (630–689) | Term |
|---|---|---|---|---|
| Personal Loan | 6.50–9.00% | 9.00–15.00% | 15.00–25.00% | 2–7 yrs |
| Auto Loan (new) | 5.00–7.00% | 7.00–10.00% | 10.00–16.00% | 3–7 yrs |
| Auto Loan (used) | 6.00–9.00% | 9.00–13.00% | 13.00–20.00% | 2–5 yrs |
| Student Loan (federal) | 6.53% | 6.53% | 6.53% | 10 yrs std. |
| Student Loan (private) | 4.50–8.00% | 8.00–12.00% | 12.00–18.00% | 5–20 yrs |
| Business Loan (SBA 7a) | Prime + 2.25–4.75% | — | — | Up to 25 yrs |
| Home Equity Loan | 7.50–8.50% | 8.50–10.00% | — | 5–30 yrs |
Top US Banks — Personal Loan Rates (January 2025)
| Bank / Lender | APR Range | Loan Range | Notes |
|---|---|---|---|
| Marcus by Goldman Sachs | 6.99–24.99% | $3,500–$40,000 | No fees, fixed rate |
| Discover Personal Loans | 7.99–24.99% | $2,500–$40,000 | No origination fee |
| LightStream (Truist) | 6.49–25.49% | $5,000–$100,000 | Rate Beat program |
| SoFi | 8.99–29.99% | $5,000–$100,000 | No fees, unemployment protection |
| Wells Fargo | 7.49–23.24% | $3,000–$100,000 | Existing customers preferred |
| Citibank | 10.49–19.49% | $2,000–$30,000 | Members only |
| Upstart | 7.40–35.99% | $1,000–$50,000 | AI underwriting, lower credit OK |
| Prosper (P2P) | 8.99–35.99% | $2,000–$50,000 | Peer-to-peer platform |
Effect of Extra Payments — $25,000 at 6.5% / 5 Years
| Extra/Month | Months to Pay Off | Total Interest | Interest Saved |
|---|---|---|---|
| $0 | 60 | $4,338 | — |
| $50 | 54 | $3,861 | $477 |
| $100 | 49 | $3,462 | $876 |
| $200 | 42 | $2,869 | $1,469 |
| $500 | 30 | $1,850 | $2,488 |
References
- Consumer Financial Protection Bureau (CFPB) — Truth in Lending Act (TILA), Regulation Z.
- Federal Reserve — Consumer Credit G.19 Report (average loan rates).
- Federal Student Aid (studentaid.gov) — Federal student loan interest rates 2024–2025.
- Small Business Administration — SBA 7(a) loan program maximum rates.
- Bankrate / NerdWallet — Monthly personal loan rate surveys (January 2025).
