Easily estimate your personal loan payments with our accurate and user-friendly loan calculator tool.
Instant result
No sign-up
Visible assumptions
Deterministic calculation
In 30 seconds: Quickly simulate loan options to find the best terms tailored to your needs. Deterministic calculation with auditable formulas. The result is indicative — adjust the assumptions to reflect your real operation.
Years to pay off. Common terms for personal loans: 1, 2, 3, 5 or 7 years.
Monthly income
Optional. If added, we compute the payment-to-income (DTI) ratio lenders use to approve.
Practical example
Loan of $10,000 USD over 3 years at 12% annual.
Monthly rate: 12 ÷ 12 ÷ 100 = 0.01.
Number of payments: 3 × 12 = 36 months.
Monthly payment ≈ $332 USD.
Total paid: $332 × 36 = $11,957 USD.
Total interest: $11,957 − $10,000 = $1,957 USD — a ~20% surcharge over the principal.
Interpretation
Personal loans charge much higher rates than mortgages (12-24% vs 6-7%) because there's no real-estate collateral.
Cutting the term from 5 to 3 years raises the payment ~35% but slashes total interest by ~50%.
Compare APR, not nominal rate: APR includes origination fees, unemployment insurance, and other charges the headline rate hides.
Lenders reject loans where the payment exceeds 35% of monthly net income. Below 25% is comfortable.
Assumptions and limitations
Fixed rate. If your loan has a variable or promotional intro rate, payments will change once it adjusts.
Excludes origination fee, unemployment insurance, GAP (auto). Typically 1-3% of the loan amount.
Excludes prepayment. Any extra principal payment reduces interest but isn't modeled here.
The result is indicative. The final payment depends on the exact rate the lender approves after credit evaluation.
When to use this calculator
Before accepting a personal loan, to know the real payment and validate it fits your budget without stressing cash flow.
To compare offers from a bank, credit union, or online lender holding amount and term constant.
When deciding between 12, 24, 36 or 60 months. Seeing total interest per scenario typically tilts the decision.
To validate the real cost of a consumer loan (appliance, vacation) before signing — the promotional rate can hide a high APR.
To choose pay-cash vs finance: if your opportunity cost is below the rate, financing may make sense.
Before an auto loan: compare with manufacturer financing — sometimes 0% APR offers come with a lower negotiated price reduction.
Common mistakes
Looking at the monthly payment only, not the total cost. A comfortable 60-month payment can cost 40-60% more than a tighter 24-month payment.
Forgetting origination fees, insurance, and GAP. Can add 3-7% to the total cost.
Not comparing APR. Lenders compete on nominal rate but the real cost can be 30-50% higher.
Defaulting to the maximum term. For a car that lasts 5-8 years, financing it 7 years leaves a balance when you no longer want the car.
Stacking small loans without checking total DTI. Each lender sees its own loan, but the sum of payments can leave you over-leveraged.
Industry use cases
US — bank personal loan
$15,000 over 3 years at 11% APR. Monthly payment ~$491. Total interest over the life of the loan: ~$2,679 — a ~18% surcharge on the principal.
Auto loan — new car
$30,000 car with 20% down ($6,000). Loan of $24,000 over 4 years at 7%: payment ~$575/mo. Add ~$120/mo insurance and you're at ~$695/mo total.
Online lender (fintech)
$5,000 over 12 months at 24% APR: payment ~$474/mo. Expensive but disbursed in 24-48 hours — useful when urgency compensates.
Education / certification loan
$20,000 for a bootcamp over 5 years at 9%: payment ~$415/mo. If the new skill raises your salary $1,000/mo, the loan + leaves $585/mo extra.
Credit-card balance refinance
$8,000 balance on credit card at 24% APR. Refinance to personal loan at 12% over 24 months: payment ~$377/mo vs ~$160/mo just on interest. Cuts real cost by ~50%.
The advanced simulators model complete scenarios — 12-month cash flow, pricing with sensitivity analysis, credit risk, delivery routes — with your own data and no sign-up.
This calculator computes the monthly payment of a personal or auto loan under the French amortization system (fixed installment), and shows the financing's full cost: total paid, total interest, an amortization table and — if you enter your income — what share of your monthly income the payment consumes.
Use it to compare loan offers before signing, decide the right term, and see, year by year, how much of each payment goes to principal versus interest. The result is indicative and does not constitute financial advice.
Inputs
Loan amount
The principal you would receive, excluding origination fees and insurance: only what gets amortized.
Annual rate (%)
The loan's annual interest rate. Use the nominal annual rate from the offer; the calculator converts it to monthly.
Term (years)
The loan's total duration. Longer terms mean lower payments but more total interest.
Monthly income (optional)
Your net monthly income, to compute what fraction the payment consumes — the basic affordability measure.
Results you get
Monthly payment
The fixed payment that amortizes the whole loan over the agreed term, interest included.
Total paid
The sum of all installments over the term: the financing's total gross cost.
Total interest
Total paid minus principal: what the loan costs beyond the money received.
Interest over principal
Total interest as a fraction of the amount: the quick measure of how expensive the loan is over its term.
Affordability
The payment as a fraction of your monthly income, if entered: the number lenders check first.
Amortization table
Year by year (and month by month in the preview): how much of each payment was interest, how much principal, and the remaining balance.
Methodology and assumptions
Monthly rate i = Annual rate ÷ 12 ÷ 100
Payment = Amount × i ÷ (1 − (1 + i)^(−n)), with n = months in the term
Total paid = Payment × n; Total interest = Total paid − Amount
Affordability = Payment ÷ Monthly income
This is the standard French amortization formula: the installment is constant and its composition shifts over time — interest dominates at first, principal at the end. The table shows that transition.
Worked example
Hypothetical example for illustration. The numbers reproduce exactly when entered into the calculator on this page.
Worked example: a $180,000 loan over 4 years at a 14% annual rate, with a $22,000 monthly income.
Monthly rate: 14% ÷ 12 = 1.1667%. Months: 48.
Monthly payment: $4,918.77.
Total paid: $4,918.77 × 48 = $236,100.76. Total interest: $56,100.76 — 31.2% on top of the principal received.
Affordability: $4,918.77 ÷ $22,000 = 22.4% of monthly income.
In the table: the first year pays $22,942.89 in interest and amortizes $36,082.30 of principal; the last year pays only $4,242.66 in interest — the composition inverts as the balance falls.
How to interpret the result
The payment tells you whether the loan fits your month; total interest tells you what the whole decision costs. Two offers with similar payments can differ widely in total cost when term or rate change: always compare both numbers.
Affordability is your personal traffic light: the larger the committed share of income, the less room for surprises. Remember the payment coexists with your other debt commitments.
Extending the term lowers the payment but raises the total: recalculate the same amount at different terms and watch total interest grow — that is the comparison worth making before choosing the longest term 'because the payment feels comfortable'.
Limitations and when not to use it
It excludes origination fees, mandatory insurance and administrative charges: the real total cost (APR or its local equivalent) will exceed the interest-only calculation.
It assumes a fixed rate for the whole term: variable-rate loans and renegotiations are not modeled.
It does not model prepayments or extra principal payments: any prepayment reduces real interest versus the table shown.
The computed affordability considers only this payment: your real capacity depends on all your debts and committed expenses.
It is an orientation tool: the binding offer and official total cost are those of the contract and the lender. It does not constitute financial advice.
From theory to calculation
The calculator on this page runs with your numbers — no forms, no login. Scroll up and try it.
1Which rate do I enter if my offer quotes APR or an effective rate?
This calculator works with the loan's nominal annual rate. APR or effective cost includes fees and insurance, so it is always higher: use it to compare offers against each other, and the nominal rate to reproduce the payment.
2Why does my bank quote a different payment?
Typical causes: insurance financed inside the loan, an origination fee added to the amount, or a different rate-conversion convention. Enter the total actually financed as the amount and the gap usually disappears.
3Is the longer term better?
It depends on what you optimize: the long term protects your monthly flow but raises total interest. Run both terms in the calculator and decide looking at both numbers — payment and total cost — not just one.
4What happens if I pay extra toward principal?
The engine doesn't model prepayments, but the logic is direct: every extra payment cuts the balance, and with it all the future interest that balance would have generated. Early prepayments save more because interest dominates at the start.
5Does it work for auto loans?
Yes: French amortization is the same. Keep in mind auto loans often carry mandatory insurance and sometimes a larger final (balloon) payment, which this calculator does not model.
What you'll see, what it prevents, and where you shouldn't trust it
Every simulator on Simúlalo ships with the same editorial structure: two hypothetical worked examples with numbers, the errors it helps you avoid, the model's declared limitations, and a visible financial disclaimer. The review is signed and dated.
Hypothetical case·Case A
Comparison between 24 and 48 months for the same amount: twice the interest
An applicant needs $80,000 MXN. At 24% annual rate (conservative market reference), the calculator shows: 24 months, monthly payment $4,232 and total paid $101,568 (interest $21,568). 48 months, monthly payment $2,627 and total paid $126,096 (interest $46,096). Decision: the 48-month payment fits more comfortably in the budget but costs $24,528 more in interest. If income allows it, short term wins.
Illustrative figures. Does not represent a real company or an investment recommendation.
Hypothetical case·Case B
Applicant who finds the 4% opening commission pushes the effective annual cost well above the advertised rate
A loan of $50,000 over 18 months with an advertised 22% annual rate and 4% opening commission (deducted at disbursement). The calculator shows a monthly payment of $3,353 on the requested amount, but the person receives only $48,000 in their account. The effective cost is higher than the advertised rate, because interest accrues on $50,000 while the money actually available was $48,000. Decision: always compare total cost against what lands in your account, not the advertised rate, and ask the lender for the total annual cost in writing before signing.
Illustrative figures. Does not represent a real company or an investment recommendation.
Common mistakes it helps you avoid
Things a team or decision-maker might assume that this simulator forces you to verify before committing.
Comparing loans by nominal rate and not by total annual cost. Opening commission, insurance, and other charges raise effective cost between 3 and 8 points.
Assuming any advertised rate applies to your profile. Advertised rates are for excellent profiles; your real rate depends on score, income, and tenure.
Ignoring mandatory insurance. Some loans automatically charge life or unemployment insurance and add to total cost.
Taking the longest term just because the payment is lower. Long terms amplify interest impact; total cost rises proportionally.
Model limitations
What the simulator does not do, and where you need a professional or a specialized tool.
Does not query real bank rates or run credit evaluation. You declare the rate; the binding offer comes from the bank after evaluation.
Does not include opening commission or insurance automatically. If your loan charges them, add those amounts manually.
Does not project rate variations if your loan is variable rate. Assumes constant rate over the full term.
Does not replace a formal bank quote. The binding offer includes total annual cost breakdown, insurance, commissions, and final terms.
When NOT to use this simulator
Don't use this calculator to decide on a formal loan commitment. It is a payment estimate; the real bank offer can differ significantly due to credit evaluation, specific commissions, mandatory insurance, and contract terms. Always read the total annual cost breakdown and consult a financial advisor before signing.
Financial notice
Results are illustrative estimates and do not constitute financial, tax, accounting, or legal advice. Use the results as a reference point and validate important decisions with a certified professional.
Editorial review
Reviewed by the Simúlalo editorial team
This simulator was reviewed by the people listed below before being published. The review covers the declared formula, the model's assumptions, the explicit limitations, and the absence of unsupported financial claims.
They are part of the Simúlalo editorial team, focused on building financial tools that are clear, educational, and easy to interpret.
Last updated: ·We update this page when the methodology, sources used, or simulator structure change.
This tool uses standard financial formulas and user-supplied data. To explain concepts like rates, credit, risk, or cash flow we consult public and official sources (Banxico, SAT, CONDUSEF, CNBV, Banco de España, IFRS, BIS, among others). Simúlalo is not affiliated with, sponsored by, or endorsed by these institutions.