LoanLens
Loan Calculator
Plug in the amount, rate, and term — see your monthly payment and how much interest you'll pay over the life of the loan.
Monthly payment on common loan amounts at 7.5% APR
Every figure comes from the same amortizing-loan formula this calculator uses, M = P x [r(1+r)^n] / [(1+r)^n - 1], with the rate held at 7.5% APR across all rows. The three payment columns show what changes when you stretch the same loan over a longer term.
| Loan amount | 3-year monthly payment | 5-year monthly payment | 7-year monthly payment | Total interest, 5-year |
|---|---|---|---|---|
| $1,000 | $31.11 | $20.04 | $15.34 | $202 |
| $2,500 | $77.77 | $50.09 | $38.35 | $506 |
| $5,000 | $155.53 | $100.19 | $76.69 | $1,011 |
| $7,500 | $233.30 | $150.28 | $115.04 | $1,517 |
| $10,000 | $311.06 | $200.38 | $153.38 | $2,023 |
| $15,000 | $466.59 | $300.57 | $230.07 | $3,034 |
| $20,000 | $622.12 | $400.76 | $306.77 | $4,046 |
| $25,000 | $777.66 | $500.95 | $383.46 | $5,057 |
| $30,000 | $933.19 | $601.14 | $460.15 | $6,068 |
| $40,000 | $1,244.25 | $801.52 | $613.53 | $8,091 |
| $50,000 | $1,555.31 | $1,001.90 | $766.91 | $10,114 |
Illustrative only, at one assumed rate. Your actual rate depends on credit score, loan type and lender, and the rate you are quoted is what moves these numbers most, so run your own figures above. The payments are pure principal and interest: origination fees, insurance and any add-ons are not included, which is why a quoted APR can sit above the headline interest rate. Notice the pattern in the last column against the payment columns - a longer term always lowers the monthly payment and always raises the total interest.
How loan payments work
Each payment covers interest on the outstanding balance first, then chips away at the principal. Early in the term most of the payment is interest; later payments are mostly principal.
Tips to pay less interest
Shorter terms always cost less in interest. Even one extra payment per year shortens a 30-year loan by 3–4 years. Make sure the loan has no prepayment penalty.
Frequently asked questions
How do I calculate the monthly payment on a loan?
For a fixed-rate loan, monthly payment = P · [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the amount borrowed, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). Enter your amount, rate, and term above and the payment updates instantly.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR (annual percentage rate) folds in most lender fees on top of the interest rate, so it reflects the fuller cost of the loan. When comparing offers, compare APRs — a lower rate with high fees can cost more than a higher rate with none.
How much total interest will I pay over the life of the loan?
Total interest equals the sum of all payments minus the amount you borrowed. Longer terms lower the monthly payment but raise total interest because you owe a balance for longer. The calculator shows both figures so you can weigh a manageable payment against overall cost.
Does making extra payments reduce the interest I pay?
Yes. Any amount above the scheduled payment reduces the principal directly, so less interest accrues for the rest of the term. Even small, regular extra payments can shorten the loan and cut total interest — provided the loan has no prepayment penalty.
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Last updated: September 6, 2026