Installment Loan Calculator

NerdWallet’s installment loan calculator shows you a monthly installment loan payment, total interest costs and payoff date based on the loan amount, rate and repayment term you enter.

Unlike credit cards or credit lines, you borrow an installment loan in a lump sum and repay it over months or years. These loans have fixed interest rates, meaning the monthly payment won’t change during repayment.

Use this installment loan calculator to estimate your monthly payments and help you decide if an installment loan is the right choice for you.

Installment loan calculator

How to use this calculator

1. Enter your loan amount ($): Enter the amount you want to borrow. Installment loans generally come in amounts that range from $1,000 to $50,000. Borrowers with strong credit, high incomes and low debt have the best chances of qualifying for a larger loan.

2. Enter your interest rate (%): Enter the interest rate you expect to receive. Note: This installment calculator only works for loans with fixed rates, not those with variable rates. Most installment lenders consider your credit and financial profiles, in addition to any collateral, when deciding your rate. (See a chart of average APRs by credit score range for personal loans below.)

3. Choose a loan term (months): Decide how long you’ll want to repay the loan. Typically installment loan terms are two to seven years. A longer repayment term will have lower monthly payments but cost more in total interest. Find a term that keeps payments low without inflating interest costs too much.

4. Add a repayment start date (mm/yyyy): Enter the date you expect to make your first loan payment. Many lenders require the first payment on an installment loan about 30 days after you receive the funds.

5. Add an origination fee, if applicable. If your lender charges an origination fee, an upfront charge that’s usually between 1% to 10% of the loan amount, you can include it using the calculator. Indicate whether the fee is deducted from the loan funds or charged upfront, whether it’s a percentage of the loan or a flat fee, and the amount of the fee. Not all lenders charge this fee. It’s often deducted from the loan, so you may need to borrow more to account for the cost.

» MORE: Best installment loans

How installment loan rates and terms affect monthly payments

Your loan term and interest rate directly affect how much you pay toward your loan each month. Here’s how:

Term: Your term affects the loan’s total interest costs and monthly payment. A shorter-term loan will cost more each month, but you’ll save on interest charges. Modify the rate and term in this calculator to see how the loan costs change.

Interest rate: A higher interest rate means your monthly payments will be higher and you’ll pay more in total interest. Many personal loan lenders let you pre-qualify online to find the lowest rate without affecting your credit score. The annual percentage rate (APR) is the best point of comparison if you’re comparing multiple loan offers because it includes both interest and fees. Here are the average personal loan rates by credit score range:

Types of installment loans and how to calculate payments

Any loan you get in a lump sum and repay in equal bi-weekly or monthly payments is an installment loan. The following loans are all examples of installment loans.

Personal loans

Unsecured personal loans are from $1,000 to $100,000 and have rates from about 6% to 36%. Loan terms are usually two to seven years, and payments are often made in monthly installments. Most personal loans don’t require collateral to secure the loan. Instead, the lender uses your credit and financial information to decide whether you qualify.

» MORE: Calculate personal loan payments

Auto loans

Auto loans are for the cost of the vehicle you’re purchasing, minus your down payment. Rates are generally lower than personal loans. Repayment terms can reach seven years, but NerdWallet recommends a term no longer than three years for used cars and five years for new cars. With an auto loan, the vehicle is collateral, meaning the lender can take the car if you miss payments.

» MORE: Calculate your monthly car loan payments

Mortgages

Mortgages are secured loans used to purchase a home, which is used as the collateral. They often have fixed rates over terms of 15 or 30 years. Your monthly mortgage payments will typically include a percentage of your property taxes and home insurance premiums, which is held in an escrow account until those payments are due.

» MORE: Calculate your monthly mortgage payments

Home equity loans

A home equity loan is a second mortgage with a fixed interest rate. Loan amounts are usually up to 85% of your home’s value minus what you owe on the first mortgage. Repayment terms are typically five to 20 years, though they could go up to 30 years. Your home is collateral for a home equity loan.

» MORE: Calculate your home equity loan amount

Student loans

Student loans are unsecured installment loans used to cover the cost of postsecondary education. Some student loans are federal loans backed by the government and have lower interest rates, while others are offered by private lenders and tend to have higher interest rates. Repayment terms tend to range from 10 to 30 years.

» MORE: Calculate your student loan payments

Buy now, pay later loans

“Buy now, pay later” companies offer low- or no-interest financing on purchases made in-store or online. These payment plans are structured as installment loans. BNPL services effectively provide a small, short-term loan that you typically repay in four equal, bi-weekly payments, the first of which is often due at the time of purchase.

» MORE: What is buy now, pay later?

High-interest installment loans

Some installment loans can have triple-digit interest rates, which can make them expensive and difficult to repay. These high-interest loans can be a few hundred dollars, but some lenders offer as much as $10,000 or $15,000. Repayment terms span from six months to five years.

High-interest lenders may not check your credit or review your income and expenses to determine whether you can repay the loan. Consider this type of loan a last resort when you’ve exhausted all other options.

» MORE: Alternatives to payday and other high-interest loans