Loan Calculator

Loan Payment Interest

Get the information you need to make the most informed borrowing decision.

The TruChoice Loan Calculator helps you better understand how interest impacts payments and loan balances over the life of a loan. Be a smarter borrower when you have all the facts! If you’re looking for more flexibility, explore personal loan options available to Maine residents.

What is the loan calculator?

Use this calculator to compare three loan options at once: monthly, bi-weekly, and yearly. Planning to finance a vehicle? See our auto loan rates for Maine drivers to estimate your monthly payment and find the option that fits your budget.

Here’s what you should know about this calculator before you get started:

• Loan amount: The amount you plan on borrowing (after any down payment). Also referred to as the principal amount. Example: For $7,500, type 7500.

• Annual interest rate: The cost of borrowing, expressed as a percentage. You can also input the APR, or annual percentage rate. Example: If the rate is 6.5%, type 6.5.

• Term: The number of months to repay the loan. If you only have the number of years available, simply multiply the years by 12 for the total number of monthly payments. Example: A 4-year loan equals 48 months, so type 48.
  

• Auto Loan Example: If you finance $30,000 for a vehicle at 6.5% APR for 60 months, your estimated monthly payment would be approximately $587 per month. Choosing a shorter loan term may increase your monthly payment but could reduce the total interest paid over the life of the loan.
  

• Personal Loan Example: If you borrow $10,000 with a 9.0% APR personal loan and repay it over 36 months, your estimated monthly payment would be approximately $318 per month. Your actual payment may vary depending on your credit profile, loan terms, and lender requirements.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

How do I use the loan calculator?

Use this calculator to compare three loan options at once:  monthly, bi-weekly, and yearly. 

Once you input the loan amount, interest rate, and term, simply click “calculate.” The calculator automatically displays your monthly payment amount, plus the amount of interest paid over the life of the loan. You can also choose to have the results emailed to you.

Tip: Click on the down arrow located on the right side of the table and you’ll see the exact loan amortization. As you change any inputs, such as interest rate or the term, then you’ll see the table automatically update.

Loan calculator FAQs

How does loan interest work?

Loan interest is the cost you pay for borrowing money, usually shown as a percentage of the amount you borrow. Lenders charge interest to make money, so the longer it takes to pay off your loan, the more interest you’ll typically pay over time.

How does a lender determine the loan amount?

Lenders consider numerous factors including your income, credit history, debt, and overall financial situation when determining how much you can safely borrow.

How does a loan calculator work?

A loan calculator helps you estimate your loan payments and understand the total cost of borrowing before you apply. Simply enter the loan amount, interest rate, and repayment term, and the calculator will automatically calculate your estimated payment amount and the total interest you may pay over the life of the loan. It can also show how different loan terms or interest rates affect your monthly budget, making it easier to compare borrowing options.

What affects my monthly payment?

Your monthly loan payment is primarily based on the loan amount, interest rate, and repayment term. Larger loans and higher interest rates typically result in higher payments, while longer repayment terms may lower monthly payments but increase total interest costs. A loan calculator can help you see how these factors impact your payment.

What is the difference between a fixed and variable interest rate?

A fixed interest rate stays the same for the entire loan term, so your payments never change. Variable interest rates can go up or down over time based on market conditions, which means your payment amount could change, too.

How much can I borrow?

The amount you may be able to borrow depends on factors such as your income, credit history, existing debts, and lender requirements. A loan calculator can help you estimate payments for different loan amounts, giving you a better idea of what may fit comfortably within your budget.

How can I apply for a loan?