Loan Calculator

Calculate your loan payments, total interest, and total cost

Loan Payment Calculator

Loan Amount

Principal loan amount

Interest Rate

Live from Federal Reserve (Live RSS when available): 12.64% personal loans (updated 2025-07-26)

Loan Term

Years

Loan repayment period

Central Bank vs Lending Rates

Fed (Federal Reserve) rate: 4.33% - this is the US central bank's federal funds rate that sets the baseline for all American interest rates. However, personal loan APRs are 6.49-35.99% (avg 12.64% from Chase, BofA). US personal loans include an 8%+ margin above the Fed rate because banks must cover higher default risk, processing costs, and profit on unsecured lending.

Disclaimer: Interest rates vary widely based on credit score, lender policies, loan amount, and term. APR may include additional fees. Shop around with different lenders for the best rates and terms.

Understanding Loan Calculations

When you take a loan, you pay back the principal amount plus interest over a specified period. Understanding how loans work helps you make better financial decisions.

Key Loan Components:

Principal: The original amount you borrow
Interest Rate: The cost of borrowing money
Term: The length of time to repay the loan
Monthly Payment: Fixed amount paid each month

Loan Comparison Tips:

Compare APR (Annual Percentage Rate) not just interest rates
Consider the total cost of the loan, not just monthly payments
Look for prepayment penalties
Check for origination fees and other charges

Common Loan Types & Terms:

Personal Loans: 6-36% APR, 2-7 years typical
Auto Loans: 4-15% APR, 3-8 years standard
Home Loans: 6-8% rates, 15-30 years typical

Student Loans: 4-12% APR, 10-25 years
Business Loans: 6-30% APR, 1-25 years
Payday Loans: 400%+ APR, 2-4 weeks

Typical Repayment Periods by Loan Type

Personal Loans: 2-7 years (3-5 years typical)
Auto Loans: 3-8 years (5-6 years common)
Mortgages: 15-30 years (30 years standard)

Student Loans: 10-25 years (10 years standard)
Business Loans: 1-25 years (5-10 years typical)
HELOC: 10-20 years draw period