Monthly Payment
$0.00
Typical Interest Rates by Loan Type
| Loan Type | Typical APR Range | Common Term |
|---|---|---|
| 30-Year Fixed Mortgage | 6–8% | 30 years |
| 15-Year Fixed Mortgage | 5.5–7.5% | 15 years |
| Car Loan (new) | 5–9% | 3–6 years |
| Car Loan (used) | 7–14% | 2–5 years |
| Personal Loan | 8–36% | 1–5 years |
| Student Loan (federal) | 5–8% | 10–25 years |
Rates are approximate and change frequently. Check with your lender for current rates.
Loan Calculator FAQ
Common questions about loans and monthly payments.
Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. This is the standard amortization formula used by all lenders.
The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus lender fees and other costs. APR gives a more complete picture of what you'll actually pay.
You can lower monthly payments by: (1) borrowing less money, (2) securing a lower interest rate by improving your credit score, (3) extending the loan term (though this increases total interest paid), or (4) making a larger down payment.
Simple version: divide total savings by monthly expenses. Example: $60,000 ÷ $2,500/month = 24 months. If your savings earn interest while you draw down, use: months = −ln(1 − (balance × r) / withdrawal) ÷ ln(1 + r), where r is the monthly interest rate (annual rate ÷ 12). At 4% annual interest, $60,000 with $2,500/month withdrawals lasts about 26 months instead of 24.
A financial calculator is a tool that solves time-value-of-money problems: monthly loan payments, total interest, future value of investments, and amortization breakdowns. Physical models like the HP 12C and TI BA II Plus are popular for finance exams (CFA, CFP). Online financial calculators like this one compute the same results instantly — no manual formula entry needed.
Usually yes — paying extra principal early reduces total interest paid and shortens the loan term. However, check for prepayment penalties in your loan agreement. Also compare the loan's interest rate to what you could earn investing that money. If your loan rate is 4% but investments return 8%, investing may be better. For high-interest debt (7%+), early payoff almost always wins.