Loan calculator
An estimate using a standard amortising loan at a fixed rate. Origination fees, insurance and any early-repayment charge are not included, and a lender quote may differ.
A fixed-rate loan payment is the amount borrowed multiplied by the monthly rate, divided by one minus one plus that rate raised to minus the number of payments. Borrowing $25,000 over 60 months at 7.5% gives a payment of about $501, and $5,050 of interest across the term.
How to use this calculator
The extra-payment row is the one worth playing with. Because interest is charged on the outstanding balance, every additional pound of principal removes all the future interest that balance would have generated. On the default loan, an extra $100 a month clears it almost a year early and saves roughly a sixth of the total interest.
Questions
No. APR folds fees into the rate to make offers comparable. Enter the plain interest rate here, then compare the total paid against the lender’s APR-based figure.