Loan Calculator
Calculate monthly payments, total interest & full amortization schedules
Amortization Schedule
| # | Payment | Principal | Interest | Balance |
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Frequently Asked Questions
How is the monthly payment calculated?
We use the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. This gives you the fixed payment amount that fully repays the loan over the term.
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus other fees and costs (like origination fees, closing costs, etc.), giving you a more complete picture of the total borrowing cost. This calculator uses the interest rate; your actual APR may be slightly higher.
How do extra payments help?
Extra payments go directly toward reducing your principal balance. This means you pay less interest over the life of the loan and can pay it off sooner. Even small extra payments can save thousands in interest and shave years off your loan term.
What is an amortization schedule?
An amortization schedule is a complete table showing every payment over the life of the loan. Each row breaks down how much goes to principal vs. interest. Early payments are mostly interest, while later payments are mostly principal — this is because interest is calculated on the remaining balance.
Can I use this for a mortgage?
Yes! This calculator works for any fixed-rate amortizing loan — mortgages, auto loans, personal loans, student loans, and more. Just enter your loan amount, interest rate, and term. Note that actual mortgage payments may also include property taxes, insurance, and PMI, which aren't included here.
Is my data stored or collected?
No. Everything runs 100% in your browser. No loan amounts, calculations, or personal information is ever sent to any server. Your financial data stays completely private.
How accurate is this calculator?
This calculator uses the exact same amortization formula used by banks and lenders. Results are accurate to the penny. However, actual loan terms may include variable rates, fees, or other factors not modeled here. Always consult with your lender for the final numbers.
What does "total interest" mean?
Total interest is the total amount you'll pay in interest charges over the entire life of the loan. It's the difference between your total payments and the original loan amount. For a 30-year $250,000 mortgage at 6.5%, you'd pay about $318,861 in total interest — more than the loan itself!
How to Use This Loan Calculator
Our free loan calculator helps you understand the true cost of borrowing before you commit. Whether you're planning to buy a home, finance a car, or consolidate debt, knowing your monthly payment and total interest cost is essential for budgeting.
Understanding Your Loan Payments
Every loan payment consists of two parts: principal and interest. In the early years, most of your payment goes toward interest. As you pay down the balance, more goes toward principal. This is why making extra payments early in the loan has the biggest impact.
Tips for Saving on Your Loan
- Shop around for rates — even a 0.25% difference can save thousands over the life of a loan
- Choose a shorter term — a 15-year mortgage has higher payments but drastically less total interest than a 30-year
- Make extra payments — use the extra payment feature above to see how much you can save
- Avoid PMI — putting 20% down on a home eliminates private mortgage insurance
- Consider refinancing — if rates drop, refinancing can lower your payment and total cost
Common Loan Types
Mortgage loans typically range from 15 to 30 years with rates between 3% and 8%. Auto loans usually run 3 to 7 years with rates from 4% to 12%. Personal loans are often 2 to 7 years with rates from 6% to 36%. Use the presets above to quickly compare different scenarios.