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!
What is the loan calculator?
Use this simple loan calculator to estimate your monthly payments, total interest, and overall cost of a loan before you borrow. Finding exact loan payment information is quick and easy and only needs a few details.
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.
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.
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 can I apply for a loan?
