Advertisement 728×90
🏦

Loan Calculator

Calculate monthly loan payments, total interest, and full amortization schedule for any loan amount, rate, and term.

Advertisement

📋 How to Use

  1. Enter the loan amount (principal) in the first field.
  2. Enter the annual interest rate (APR) as a percentage.
  3. Enter the loan term in years (or months).
  4. Click Calculate to see your monthly payment and total interest.
  5. Scroll down to view the complete month-by-month amortization schedule.

About This Tool

Loan Calculator — Plan Your Borrowing with Confidence

Understanding the true cost of a loan before signing is essential to sound financial planning. Our Loan Calculator computes monthly payments, total interest paid, and a complete amortization schedule for any type of loan — mortgage, auto loan, personal loan, or student loan.

What You Can Calculate

Monthly payment: The fixed amount you pay each month based on the principal, interest rate, and loan term.

Total interest paid: The cumulative amount paid in interest over the full life of the loan — often the most eye-opening figure.

Total amount paid: Principal plus total interest — the actual cost of borrowing.

Amortization schedule: A month-by-month breakdown showing:

  • Payment number
  • Monthly payment amount
  • Principal portion of each payment
  • Interest portion of each payment
  • Remaining balance after each payment

The Loan Payment Formula

Monthly payment is calculated using the standard amortization formula:

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where:

  • M = monthly payment
  • P = principal loan amount
  • r = monthly interest rate (annual rate ÷ 12)
  • n = total number of payments (years × 12)

Input Parameters

  • Loan amount: The total amount borrowed.
  • Annual interest rate: The APR (Annual Percentage Rate) stated in the loan offer.
  • Loan term: Duration in years or months.
  • Start date: Optional, to generate a real calendar-aligned amortization schedule.

Use Cases

Home buyers: Estimate monthly mortgage payments for different house prices, down payments, and interest rates before making an offer.

Car buyers: Compare the true cost of financing different vehicle prices over 3, 4, or 5-year terms.

Student loan borrowers: Understand the total repayment cost and monthly obligations before taking out education loans.

Business owners: Model loan costs for equipment financing, real estate purchase, or business expansion loans.

Tips for Using the Calculator

  • Compare loans with the same term but different interest rates to see how much rate differences matter.
  • Try shorter terms to see how much total interest you save despite higher monthly payments.
  • Use the amortization schedule to see how much of your early payments go to interest vs. principal.

Plan your loan payments now — free and instant.

❓ Frequently Asked Questions

An amortization schedule is a table showing each loan payment broken into principal and interest portions, along with the remaining balance after each payment. It reveals how the loan is paid off over time.
With standard amortizing loans, interest is calculated on the outstanding balance. Early in the loan, the balance is high so more interest accrues. As the balance decreases, less interest is charged per payment.
The interest rate is the base rate on the loan. APR (Annual Percentage Rate) includes the interest rate plus fees and costs, giving a more complete picture of the annual borrowing cost.
Shorter terms increase monthly payments but significantly reduce total interest paid. A 15-year mortgage has higher payments than a 30-year but typically saves tens of thousands in interest.
Enter the loan amount after the down payment (purchase price minus down payment). The calculator works on the financed portion.
This calculator focuses on principal and interest only. Property taxes and insurance (PITI components) are separate costs that should be added to get the total housing payment.

🔗 Related Tools