Loan calculator

Put 20% down, finance for no more than 4 years, and keep total transportation costs (payment + insurance + fuel) under 10% of gross income. Following this rule keeps car costs from eating your budget.

FICO scores are grouped into bands. Crossing from 669 to 670 might drop your rate by 2 percentage points. If you're near a threshold, improving your score a few points before applying can save thousands.

A new car loses 20-30% of its value in year one. If you total the car, insurance pays market value — which may be less than you owe. GAP coverage pays the difference. Worth considering if you're financing more than 80% of the purchase.

Longer terms lower monthly payments but increase total interest paid. A $20,000 loan at 6%: 3 years costs $1,878 interest, 5 years costs $3,199, 7 years costs $4,549. Each extra year of payments adds roughly $600-$700 to your total cost.

Usually yes, if there's no prepayment penalty. Extra payments go directly to principal, reducing the balance that accrues interest. An extra $50/month on a $25,000 loan at 7% saves $500+ and pays off 4 months early.

750+ typically gets the best rates. 700-749 is good. 660-699 is fair. Below 660, expect significantly higher rates. A 750 score might get 5%; a 650 score might get 12% for the same loan.

Multiply principal by [r(1+r)^n] / [(1+r)^n − 1], where r = monthly rate (annual ÷ 12) and n = total payments. Or use this calculator — the formula is tedious by hand.

Some loans charge a fee if you pay off early or pay too much principal in year one. Read your note—many simple auto and personal loans have no penalty, but always verify before making a large lump-sum payment.

It lowers principal, which lowers payment and total interest. On the same rate and term, every $1,000 less borrowed saves roughly $20–25/month on a 5-year auto loan at mid-single-digit rates.

Lower payment, higher total interest. If you invest the payment difference at a higher after-tax return than the loan rate, longer can win mathematically—but many people spend the difference instead. Choose the term you will actually stick with.

Compare remaining interest on your current loan to total interest on a new loan including fees. Break-even months = closing costs ÷ monthly savings. If you might sell before break-even, refinancing may not pay.

Interest rate is the cost of borrowing. APR includes the interest rate plus fees, expressed as an annual rate. A loan with 6% interest and $500 in fees might have a 6.3% APR. APR lets you compare total borrowing cost across different loan offers—always compare APR to APR, not just rates.

Origination fees are typically 1-5% of the loan amount, charged upfront. On a $20,000 loan with 3% origination ($600), you receive $19,400 but repay $20,000 plus interest. This raises your effective rate. Factor fees into total cost comparisons—a low rate with high fees can be worse than a higher rate with no fees.

Most personal and auto loans have no prepayment penalty, but some do—especially subprime loans and mortgages originated before 2014. Check your loan documents for 'prepayment penalty' clauses. If there's no penalty, paying early always saves you interest since you're reducing the principal balance that accrues interest.

Secured loans use collateral (car, house) that the lender can take if you don't pay. Unsecured loans (personal loans, credit cards) have no collateral—lenders rely on your creditworthiness. Secured loans typically have lower rates because the lender has less risk. Defaulting on a secured loan means losing the asset; defaulting on unsecured means collections and credit damage.

Plug the same rate with five- and six-year terms. Note payment drop vs extra total interest—useful when a dealer pushes a longer term to fit a monthly budget.

Enter the consolidated balance and offered APR. Compare total interest to the sum of minimums on cards you would pay off—only net-of-fees matters.

Some lenders apply extra automatically to principal; others need instructions. Mathematically, extra principal shortens term and cuts interest—model the payment increase here as a shorter effective life if your servicer recalculates payoff date.

Use the calculator to hold payment constant while you compare offers. Credit scoring often treats multiple auto inquiries in a short window as one event—still confirm with your lender.

Model the payment against the co-signer's budget, not just the primary borrower. If the primary misses, the co-signer owes—stress-test a higher rate scenario.