Loan Calculator
Calculate the monthly payment on a mortgage, car, personal or student loan, see how much of it goes to interest, and get a full amortization schedule, including the effect of extra payments.
Results
Monthly payment
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Principal and interest.
- Total interest
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- Total of all payments
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- Number of payments
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- Payoff date
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Effect of your extra payment
- Time saved
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- Interest saved
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Principal and interest by year
- Principal
- Interest
Amortization schedule
Years are calendar years. The payment column includes any extra payment.
Estimates only, not financial advice. Actual payments and terms come from your lender and can differ because of fees, payment dates, rounding rules and the exact rate in your contract.
How to use the Loan Calculator
- Enter the amount you plan to borrow and the annual interest rate from your loan offer.
- Enter the term in years, months or both (for a two-year loan: 0 years, 24 months).
- Choose the month of your first payment and a currency symbol.
- Optionally add an extra amount you will pay every month.
- Read the payment, totals and payoff date, and switch the schedule between yearly and monthly rows.
Results update as you type. Everything is calculated in your browser; nothing you enter is sent to a server.
How the loan payment is calculated
The calculator uses the standard payment formula for a fully amortizing fixed-rate loan:
M = P · r(1 + r)n / ((1 + r)n − 1)
- M – the regular monthly payment (principal and interest).
- P – the amount borrowed.
- r – the monthly rate: the annual rate divided by 100 and by 12 (6 % gives 0.005).
- n – the number of monthly payments (30 years gives 360).
Each month, interest is charged on the remaining balance (balance × r) and the rest of the payment reduces the balance. As the balance shrinks, the interest part falls and the principal part grows while the payment stays the same; the list of those payments is the amortization schedule. At 0 % the formula would divide by zero, so the payment is simply P / n.
Like a lender's schedule, the calculator rounds the payment and each month's interest to the cent, and the final payment covers whatever is left, so the balance ends at exactly zero. Totals can therefore differ by a dollar or so from calculators that multiply an unrounded payment by n.
Assumptions: a fixed rate, payments at the end of each month, monthly compounding at the annual rate ÷ 12, and no fees, insurance or taxes. Extra payments go entirely to principal. Adjustable-rate, interest-only and balloon loans need a different model.
Examples
1. A 30-year mortgage
$200,000 at 6 % for 30 years: r = 0.005 and n = 360, so (1.005)360 ≈ 6.0226 and M = 200,000 × 0.005 × 6.0226 / 5.0226 ≈ $1,199.10. In the first month, interest is 200,000 × 0.005 = $1,000.00 and only $199.10 reduces the balance. Over 360 payments you pay $431,677.04, of which $231,677.04 is interest; the final payment is $1,200.14 because of cent rounding.
2. A five-year car loan with an extra $100
$25,000 at 7.5 % for 5 years costs $500.95 a month and $5,056.96 in total interest (the 60th payment is $500.91). Paying $100 extra each month clears the loan in 49 payments, 11 months sooner, with $4,043.26 of interest: a saving of $1,013.70.
3. A 0 % financing offer
$10,000 over 24 months at 0 %: M = 10,000 / 24 = $416.666…, rounded to $416.67. Twenty-three payments of $416.67 add up to $9,583.41, so the 24th payment is $416.59 and you repay exactly $10,000.00.
What affects your monthly payment
The amount borrowed scales the payment and the interest proportionally. The term trades a lower payment for more interest, and the rate raises both. For a $200,000 loan:
| Rate and term | Monthly payment | Total interest |
|---|---|---|
| 6 %, 15 years | $1,687.71 | $103,788.82 |
| 6 %, 20 years | $1,432.86 | $143,887.30 |
| 6 %, 30 years | $1,199.10 | $231,677.04 |
| 5 %, 30 years | $1,073.64 | $186,513.24 |
| 7 %, 30 years | $1,330.60 | $279,021.94 |
Doubling the term from 15 to 30 years cuts the payment by about $489 but more than doubles the interest. On a 30-year loan, each percentage point of rate changes the payment by roughly $125–$132 a month.
APR vs. interest rate
The interest rate (the note rate) is the cost of borrowing the principal and is what the formula uses. The annual percentage rate (APR) also folds in upfront costs such as origination fees, discount points and some closing costs, expressed as a yearly rate. US lenders must disclose it under the Truth in Lending Act (Regulation Z), and UK lenders advertise a representative APR. Because it includes fees, the APR is usually higher than the note rate and is the better number for comparing offers. This tool uses the rate you enter and adds no fees, so enter the note rate to estimate your payment; entering the APR would usually overstate it slightly.
How extra payments save interest
Each month's interest is the balance times the monthly rate, so every dollar that reduces the balance early stops generating interest for the rest of the loan. The required payment stays the same, more of each later payment goes to principal, and the loan ends early. In the mortgage example, an extra $200 a month pays the loan off in 252 payments instead of 360 (nine years sooner) and saves $79,800.86 in interest. Before prepaying, check for a prepayment penalty and ask the lender to apply the extra amount to principal rather than to the next installment.
Common types of loans
- Mortgages run for long terms, commonly 15 or 30 years in the US. The monthly bill often also collects property tax and insurance through escrow, which this calculation leaves out.
- Auto loans usually last three to seven years and are secured by the car. Long terms lower the payment but can leave you owing more than the car is worth.
- Personal loans are typically unsecured and fixed-rate. An origination fee deducted from the amount you receive shows up in the APR, not in this payment.
- Student loans amortize the same way once repayment starts, but unpaid interest from school or deferment may be added to the balance, and US federal income-driven plans set payments differently.
Frequently asked questions
What is an amortization schedule?
A table that splits every payment into interest and principal and shows the balance left afterward. The yearly view above totals each calendar year, which helps with budgeting and with checking a lender's annual interest statement.
Why does most of my early payment go to interest?
Interest is charged on the outstanding balance, which is largest at the start. On a 30-year loan at 6 %, the first payment is about 83 % interest, and principal does not overtake interest until payment 223.
Does the payment include property tax and insurance?
No, it is principal and interest only. A mortgage payment with escrow (often called PITI) also covers property tax, homeowners insurance and sometimes mortgage insurance, so your actual bill will be higher.
How do bi-weekly payments compare?
Paying half the monthly amount every two weeks makes 26 half-payments, or 13 full payments, a year. You can approximate this by entering one-twelfth of your payment as the extra monthly amount; ask your lender how bi-weekly payments are credited.
Why is my last payment different from the others?
Rounding the regular payment to the cent leaves a small difference that builds up over the term, and extra payments leave a smaller remainder at the end. The final payment is exactly what is still owed.
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Disclaimer: These results are estimates for information only and are not financial advice. Your actual rate, payment, fees and schedule depend on your lender and your loan agreement.