Loan Calculator
Calculate monthly payments, total interest, and amortization for any fixed-rate loan.
Monthly Payment
Total of Payments
Total Interest
Yearly Amortization Schedule
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|
How the Loan Calculator Works
This calculator handles fixed-rate amortizing loans, where you repay the loan with equal monthly payments over a set term. Each payment covers the interest accrued during the month plus a portion of the principal. Early in the loan, most of each payment goes toward interest; over time, more of it goes toward paying down the principal balance.
The Amortization Formula
The fixed monthly payment is calculated as:
M = P · r · (1 + r)n / ((1 + r)n − 1)
where P is the loan amount (principal), r is the monthly interest rate (annual rate ÷ 100 ÷ 12), and n is the total number of monthly payments. When the interest rate is 0%, the payment is simply P ÷ n.
Frequently Asked Questions
What is the total of payments?
It is the monthly payment multiplied by the number of payments (M × n). The total interest is that figure minus the original loan amount.
Does a longer term reduce my cost?
A longer term lowers the monthly payment but increases the total interest paid over the life of the loan.
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Disclaimer: This calculator provides estimates for educational purposes only and does not constitute financial advice. Results do not account for taxes, fees, insurance, or changes in interest rates. Actual loan terms may vary. Consult with a qualified financial advisor or lender before making borrowing decisions.