Loan Calculator

A fixed-rate loan has the same interest rate for the entire term. Your monthly payment stays constant, making it easy to budget. Each payment covers both interest and principal, with the interest portion decreasing over time as the balance drops.

Total interest depends on three factors: loan amount, rate, and term. A $25,000 loan at 7.5% for 5 years costs about $4,900 in interest. The same loan over 10 years costs about $10,200 — more than double — because you are paying interest on the balance for twice as long.

Key factors include your credit score, debt-to-income ratio, loan amount, loan term, and whether the loan is secured or unsecured. A credit score above 740 typically qualifies for the best rates, while scores below 670 result in significantly higher rates.

Extra payments reduce your principal faster, which lowers total interest and shortens the loan term. Even small additional amounts help. On a $25,000 loan at 7.5% over 5 years, paying just $50 extra per month saves about $700 in interest and pays off the loan 5 months early.