Simple Loan Calculator
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How to use Credit Karma’s loan calculator
Whether you’re thinking of taking out a personal loan for debt consolidation or a student loan for college costs, you probably want a sense of how much your loan will cost over time.
Our loan calculator can help you understand the costs of borrowing money and how loan payments may fit into your budget. It takes into account your desired loan amount, repayment term and potential interest rate. You’ll be able to view an estimated monthly payment, as well as the amortization schedule, which provides a breakdown of the principal and interest you may pay each month.
To estimate your monthly loan payment, you’ll need the loan amount (the amount you’d like to borrow) and the loan term (or how long you have to pay back your loan and the interest rate on the loan).
Keep in mind that this loan payment calculator only gives you an estimate, based on the information you provide. Loan fees like prepayment penalty or origination fee could increase your costs or reduce the loan funds you receive. This loan payment calculator also doesn’t account for additional mortgage-related costs, like homeowners insurance or property taxes, that could affect your monthly mortgage payment.
What should you consider before taking out a loan?
As you estimate your payments, keep in mind that doing some planning before you apply for a loan can pay off in the long run.
Set a budget
If you need or want to take out a loan, it’s a good idea to figure out how much space you have in your monthly budget. You don’t want to take on a payment that will be a struggle to make each month. Additionally, lenders may look at your debt-to-income ratio to determine whether you qualify for a loan and — if so — how much they may lend you.
Decide if you want to put up collateral
Secured loans often have lower interest rates than unsecured loans, but they come with a risk: You’re putting up collateral such as your car or home in exchange. That means if you default on your loan, the lender could take your property.
Compare loan offers
It’s a good idea to shop around and compare loan offers from multiple lenders. You can check your estimated rate by applying for prequalification, if possible. Getting prequalified gives you an idea of what your loan rate and loan terms could be and without a hard inquiry on your credit reports.
Just remember that if you decide to officially apply for a loan you prequalify for, your rate and terms could still change, and the lender will likely perform a hard credit inquiry, which can negatively affect your credit scores.
FAQs about loans
There isn’t an exact answer for how much you may be able to borrow with a $500 monthly payment. This is because the interest rate each person is approved for can vary and will impact how much the monthly payment will be. It also depends on how long you have to repay your loan. If you’re able to pick a longer repayment term length, you may be able to afford to borrow more — but a longer repayment term length also likely means paying more interest over the life of the loan.
It depends on your personal situation whether a 72-month loan is a good fit. The longer the repayment length is, the more interest you’ll pay over the life of the loan. But you shouldn’t choose a shorter loan length just to save on interest. Choose the loan length that gives you a monthly payment that fits into your budget.
Before you prequalify or apply for a loan, you can use Credit Karma’s simple loan calculator to estimate your potential monthly loan payments along with the total interest paid over the life of the loan. This can give you a better idea of what you may be able to afford before starting the process of prequalifying and applying for loans.