Loan calculator

Longer terms mean more interest revenue for the lender. A $30K loan at 6%: over 3 years the lender collects $2,800 in interest. Over 7 years, $6,700. Same principal, same rate, $3,900 more profit. They'll happily offer you the longer term.

Fixed means your rate stays the same for the entire loan. Variable (or adjustable) means the rate can change based on market conditions. Fixed gives you certainty; variable can save money if rates drop but can cost you if they rise. Most consumer loans—auto, personal—are fixed.

Interest rate is what you pay on the balance. APR includes fees and gives you the true annual cost. A loan at 6% with a $500 origination fee might have a 6.8% APR. Compare APRs, not just rates, when shopping.

Most consumer loans allow early payoff without penalty. Check your agreement. Paying off early saves interest because you stop accruing it. A 5-year loan paid off in 3 years saves 2 years of interest charges.

A mortgage is a loan secured by real estate. If you don't pay, the lender can take the property. A personal or auto loan might be secured (collateral) or unsecured (no collateral, higher rate). The math is the same; the security and rates differ.

Most consumer loans allow early payoff, but some have prepayment penalties. Check your loan agreement. Paying early saves interest because you stop accruing it on the unpaid balance.

Extend the term, lower the rate, or borrow less. Extending the term lowers the payment but increases total interest. Lowering the rate (refinance or negotiate) saves both ways. Borrowing less is the simplest answer.

It depends on credit score and lender. As of 2024, personal loans range from about 6% (excellent credit) to 36% (poor credit). Auto loans secured by the vehicle typically run 4–12%. Shop around—rates vary widely.