Loan Calculator
Calculate Payments for Any Loan
Whether you are buying a new car, consolidating debt with a personal loan, or planning for student tuition, borrowing money costs money. CalculatorBud’s **Loan Calculator** helps you determine your exact monthly payment and, more importantly, the total interest you will pay over the life of the loan.
Unlike a mortgage calculator, this tool is flexible. You can calculate terms in **Months** (perfect for auto loans) or **Years** (perfect for personal loans).
How to Use This Calculator
To get an accurate result, you need three key pieces of information:
- Loan Amount ($): The total amount of money you are borrowing (Principal).
- Interest Rate (%): The Annual Percentage Rate (APR) offered by the lender.
- Loan Term: How long you have to pay it back. For cars, this is usually 36 to 72 months. For personal loans, it is usually 1 to 5 years.
The Cost of Borrowing: Interest Explained
Many people focus only on the "Monthly Payment" and forget about the "Total Interest." This is a mistake that lenders count on.
• Scenario A: 3-Year Term at 5% = Payment is $600/mo. Total Interest: $1,579.
• Scenario B: 6-Year Term at 5% = Payment is $322/mo. Total Interest: $3,190.
By stretching the loan to 6 years, your monthly payment drops, but you pay double the interest. Always check the "Total Cost" section in the calculator results.
Types of Loans Calculated
🚗 Auto Loans
Car loans are typically short-term (36 to 84 months). Because cars depreciate (lose value) quickly, it is smart to keep the loan term as short as possible so you don't end up "underwater" (owing more than the car is worth).
💳 Personal Loans
These are unsecured loans often used for home renovations, weddings, or debt consolidation. Interest rates vary wildly based on your credit score, ranging from 6% to 35%.
🎓 Student Loans
Standard student loans often use a 10-year repayment plan. You can use this calculator to see how making extra payments (or refinancing to a lower rate) could save you money.
Amortization Formula
Curious about the math? This calculator uses the standard amortization formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where:
- M = Monthly Payment
- P = Principal (Loan Amount)
- i = Monthly Interest Rate (Annual Rate ÷ 12)
- n = Total Number of Payments (Months)
Frequently Asked Questions
Does this calculator include fees?
This calculator estimates Principal and Interest. It does not include origination fees, closing costs, or late fees, which some lenders may add to the balance.
What is a good interest rate?
Rates change daily based on the economy. Generally, secured loans (like cars/houses) have lower rates than unsecured loans (personal loans). A good credit score (700+) is the best way to secure a low rate.