How it works
Most loans use an amortizing payment schedule with equal monthly payments: Payment = Principal × r / (1 − (1 + r)−n), where r is the monthly interest rate (APR / 12) and n is the number of months. Early payments are mostly interest; later payments mostly reduce the principal.
A longer term lowers your monthly payment but increases the total interest you pay. Use this calculator to compare terms and rates before you borrow. Actual payments may also include fees, insurance or taxes depending on your lender.