GetToolr

How to Use This Calculator

Enter your loan amount, interest rate, and term. Switch between years and months for the term. Toggle biweekly payments to see how paying every two weeks saves interest. The term comparison table shows the same loan at different lengths so you can see the tradeoff between monthly payment and total cost.

Calculator

Loan Calculator

Calculate monthly payments, total interest, and compare different loan terms for any loan type.

Loan Details

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Term Comparison

Same loan amount and rate, different terms.

TermMonthlyTotal InterestTotal Cost
5 yr$506.91$5,415$30,415
1 yr$2,174.71$1,097$26,097
2 yr$1,130.68$2,136$27,136
3 yr$783.41$3,203$28,203
4 yr$610.32$4,296$29,296
6 yr$438.33$6,560$31,560

Monthly Payment

$506.91

Loan Summary

Loan Amount$25,000
Total Interest$5,415
Total Cost$30,415
Payoff60 months (5.0 yr)

Interest vs Principal

Interest: $5,415 (18%)Principal: $25,000

How Loan Payments Work

Every fixed-rate loan payment contains two parts: principal (reducing your balance) and interest (the cost of borrowing). In the early months, most of your payment goes to interest. As the balance decreases, more goes to principal. This is why extra payments early in a loan save the most money.

For example, on a $25,000 loan at 8% for 5 years, your first payment of $507 includes $167 in interest and $340 in principal. By the final year, almost the entire $507 goes to principal because the remaining balance is small.

The biweekly trick

Switching from monthly to biweekly payments is the easiest way to save money on any loan. You barely notice the difference in your budget (half a payment every two weeks feels like normal monthly payments) but you make one extra full payment per year. On a $25,000 loan at 8%, this saves about $600 in interest and pays it off 4 months early.

Frequently Asked Questions

How is a loan payment calculated?
Fixed-rate loan payments use an amortization formula that divides the total cost (principal + interest) into equal monthly payments. The formula accounts for compound interest, so early payments are mostly interest while later payments are mostly principal. The calculator handles this math instantly.
What is a good interest rate for a personal loan?
Personal loan rates in 2026 range from 6-36% depending on credit score and lender. Excellent credit (740+) typically gets 6-10%. Good credit (670-739) sees 10-16%. Fair credit (580-669) ranges from 16-24%. Below 580, rates can exceed 25%. Credit unions often offer the best rates.
How do biweekly payments save money?
Biweekly payments mean you pay every two weeks instead of monthly. Since there are 52 weeks in a year, you make 26 half-payments, which equals 13 full monthly payments instead of 12. That extra payment each year goes entirely to principal, reducing interest and shortening the loan term.
Should I choose a shorter or longer loan term?
Shorter terms have higher monthly payments but save significantly on interest. A $25,000 loan at 8% costs $3,520 in interest over 3 years versus $7,050 over 5 years. Choose the shortest term you can comfortably afford to minimize total cost.

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