Repayments that match Chipkie
See monthly, every-two-weeks or weekly repayments calculated on a reducing balance using the same scheduling rules Chipkie uses when a loan is created.
US Family Loan Calculator
Plan repayments, compare interest and see IRS AFR context for a loan between family or friends.
A clear family-loan plan starts with the numbers
Whether you are charging commercial interest or providing an interest-free loan (0% interest) to help a child enter the property market, this tool will calculate your exact weekly or monthly repayments instantly.
Plan the loan with the numbers and context in one place
Explore a fixed-term family loan in US dollars before anyone commits. Chipkie keeps the repayment math, federal AFR context and optional borrower-state rate guidance together.
Current-term AFR context
The calculator identifies the short-, mid- or long-term AFR band for the selected term and can apply the displayed rate with one click. AFR is a federal tax benchmark—not a maximum rate or a personalized recommendation.
Optional state guidance
Choose the borrower’s state to check whether the entered rate may exceed a commonly cited general interest limit. State rules contain exceptions and can depend on the loan, amount, lender and security.
Explore different outcomes
Compare the family-loan scenario with the clearly sourced bank-rate example, view balance and principal-versus-interest charts, add an extra amount to each payment and pin up to three scenarios.
See the complete cost
Review each payment, the number of payments, total interest, total repaid and expected payoff date—not only the headline payment.
Keep the plan
Open the complete payment schedule, download it as CSV, save the breakdown or carry the amount, rate, term and frequency into Chipkie’s loan-creation flow.
How to use the US family loan calculator
- Enter the loan amount.Use the amount the borrower will actually receive.
- Choose an annual interest rate.Compare 0%, the displayed AFR or a custom rate. A 0% rate does not automatically remove federal tax considerations.
- Set the term and payment frequency.Choose the number of months and monthly, every two weeks or weekly repayments.
- Choose the first payment date.This determines the estimated payoff date and payment schedule.
- Select the borrower’s state if helpful.The state check provides general ceiling guidance, not a legal determination.
- Review the whole result.Compare payments, total interest, total repaid and payoff date; then test alternatives, download the schedule or create the loan.
Example: a $25,000 family loan over four years
Illustrative calculation captured August 14, 2026. For a $25,000 loan over 48 months at 4.35% annually, repaid monthly beginning August 14, 2026, the calculator shows:
$568.40Monthly payment
48Payments
$2,283.20Total interest
$27,283.20Total repaid
Estimated payoff date: August 14, 2030. The 4.35% figure was the calculator’s displayed August 2026 mid-term AFR reference. AFRs change monthly, so rerun the calculator for the actual loan date.
How to interpret your result
These figures are estimates based on a reducing-balance, fixed-term loan with payments made as scheduled. Rounding may slightly change the final payment. The bank-rate comparison is illustrative and should always display its source and as-of date.
AFR, imputed-interest, gift-tax and state interest-limit messages provide general information only. Chipkie does not determine how the parties, loan purpose, security, lender status or tax circumstances affect the result. The calculator is not personalized tax, legal or financial advice. Verify current official guidance and obtain professional advice where appropriate.
Understanding AFR and state interest limits
The Applicable Federal Rate and state usury rules address different boundaries. Checking one does not settle the other.
AFR is a federal tax benchmark
The IRS publishes Applicable Federal Rates every month. The relevant band generally depends on the term: short-term for no more than three years, mid-term for over three through nine years, and long-term for over nine years.
A below-market loan can cause the lender to recognize interest that was not actually paid and can also produce gift treatment, depending on the arrangement.
State ceilings are separate
AFR is not a nationwide legal maximum. State usury laws may instead impose conditional ceilings. A rate can therefore be above the AFR while still exceeding an applicable state limit.
There is no single US usury rate. Exemptions and calculation methods vary by state, loan type, amount, lender and security, so verify the official rule that applies to the arrangement.
Official US sources
- IRS Applicable Federal Rates index
- IRS Publication 550: Investment Income and Expenses
- IRS Publication 525: Taxable and Nontaxable Income
- IRS Instructions for Form 709
- 26 U.S.C. § 7872: Treatment of loans with below-market interest rates
- 26 U.S.C. § 1274: Applicable Federal Rate provisions
Last content review: August 14, 2026. AFR data is updated monthly, and the calculator identifies the month it is using. State rules may change independently; verify the source and date before relying on any rate guidance.
US family loan calculator FAQs
Clear answers about repayment calculations, AFR, interest-free loans and borrower-state guidance.
What does a US family loan calculator show?
It estimates each repayment, the number of payments, total interest, total repaid and payoff date for a fixed-term loan between relatives or friends. Chipkie also provides a full payment schedule, charts, early-payoff scenarios and US-specific AFR and state interest-limit context.
How does Chipkie calculate family-loan repayments?
Chipkie uses reducing-balance amortization. Each payment covers interest accrued on the outstanding balance, with the remainder reducing principal. The calculator supports monthly, every-two-weeks and weekly schedules using the same calculation rules as Chipkie’s loan-creation flow.
Can a US family loan be interest-free?
A family may agree to a 0% rate, but that does not necessarily make the arrangement tax-neutral. A fixed-term loan below the applicable AFR may be subject to federal below-market-loan rules, including imputed interest and possible gift treatment. Review current IRS guidance for the actual arrangement.
What is the Applicable Federal Rate?
The Applicable Federal Rate, or AFR, is a set of rates published monthly by the IRS for federal tax purposes. The relevant short-, mid- or long-term rate depends on the loan term. It is a tax benchmark, not a commercial bank rate or a nationwide interest ceiling.
Which AFR band applies to my loan?
The federal short-term rate generally applies to terms of three years or less, the mid-term rate to terms over three years through nine years, and the long-term rate to terms over nine years. The calculator selects the band from the term entered.
Are loans of $10,000 or less automatically exempt from AFR rules?
No. IRS Publication 550 says the $10,000 exception does not apply to term loans. Because this calculator models a fixed-term repayment schedule, do not assume a smaller loan is exempt. Other details—including use of the funds—can also affect the analysis.
Is the AFR the maximum interest I can charge?
No. AFR is relevant to federal below-market-loan tax analysis. State usury laws may separately limit the maximum interest that can be charged, and those rules vary by state, loan type, amount, lender and other circumstances.
Does my state limit the rate on a family loan?
It may. Many states impose general interest limits, but exemptions and calculation methods differ. Select the borrower’s state to see Chipkie’s general guidance, then verify the current official state rule before agreeing to a rate.
Can a below-market family loan create gift-tax reporting?
Potentially. IRS guidance says an interest-free or below-market loan may produce gift treatment, and the lender may also have imputed-interest income. Whether a return is required or tax is payable depends on the facts and available exclusions; one does not automatically mean the other.
What should a family loan agreement record?
A clear agreement should identify the parties, principal, annual interest rate, repayment frequency, first payment date, maturity and what happens if circumstances change. Both parties should retain the signed terms and a record of actual payments.
Can I compare or export different repayment plans?
Yes. You can adjust the amount, rate, term, frequency and start date, test extra repayments, pin up to three scenarios, view the complete payment schedule and download it as CSV. You can also carry the selected figures into Chipkie.
What kinds of loans does this calculator not model?
It does not model demand loans, interest-only loans, balloon payments, secured mortgages or entity-specific lending structures. It is designed for ordinary fixed-term, reducing-balance loans between family members or friends. Specialist arrangements need separate tax and legal review.
Ready to turn the estimate into a shared plan?
When both people are comfortable with the amount, rate, term and repayment frequency, carry the scenario into Chipkie to record the agreement and track repayments in one shared place. The calculator remains free to use without an account.
