Loan Calculator
Calculate monthly loan payments, total interest, and a full amortization schedule. Model extra payments to see payoff acceleration and interest savings.
Last updated: 2026-03-03
Loan calculator
Enter loan details
Enter your loan amount, APR, term, and optional extra payment.
Monthly Payment
--
Fixed monthly payment based on your loan terms.
Fill in the inputs and click Calculate to generate payments and amortization details.
Example scenarios
Apply a preset to test realistic borrowing situations instantly.
Auto Loan
$25,000 at 6.5% for 60 months
Typical 5-year auto loan scenario using the page defaults.
Result: $489.15/mo, $4,349.22 interest
Personal Loan
$10,000 at 9% for 36 months
Debt consolidation example with a common 3-year term.
Result: $318.00/mo, $1,447.90 interest
Extra Payment Impact
$25,000 at 6.5% + $100 extra
Same auto loan with extra principal to shorten payoff.
Result: Pays off in 49 months, saves $865.44 in interest
How Loan Amortization Works
A loan amortization schedule splits each monthly payment into two pieces: interest and principal. At the beginning of a loan, your balance is highest, so a larger share of each payment goes to interest. As your balance drops, the interest portion gets smaller and more of each payment goes toward principal.
The payment formula
M = P[r(1+r)^n] / [(1+r)^n - 1]
Where P is the loan amount, r is monthly interest rate, and n is number of monthly payments.
Three factors drive your payment amount: loan amount, APR, and term length. Longer terms lower monthly payments but increase total interest. Higher rates increase both your monthly payment and lifetime borrowing cost.
Extra monthly payments are powerful because they go directly toward principal. Lower principal means less interest in future months, which accelerates payoff and compounds your savings. Even modest extra payments can shorten a loan by months and materially reduce total interest.
Loan calculator FAQs
Common questions about monthly payments, amortization, and extra principal.
How is my monthly loan payment calculated?
Your payment uses the standard amortization formula M = P[r(1+r)^n] / [(1+r)^n - 1]. It sets a fixed payment amount that covers each month’s interest and also reduces principal over time.
What is an amortization schedule?
An amortization schedule is a month-by-month table that shows how each payment splits into interest and principal. It also shows your remaining balance after each payment until it reaches zero.
How do extra payments reduce total interest?
Extra payments go directly toward principal. A lower principal balance means less interest accrues in future months, which compounds your savings and shortens payoff time.
What happens if my interest rate is 0%?
At 0% APR, there is no interest charge, so the monthly payment is simply loan amount divided by term months. The amortization schedule will show zero interest each period.
Should I choose a shorter or longer loan term?
Shorter terms increase monthly payments but reduce total interest paid. Longer terms lower monthly payments but increase total cost over the life of the loan.
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Shopping rates can reduce your APR and lower total interest paid over the life of your loan.
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Disclaimer
This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on fixed-rate, fully amortizing loans with no fees. Actual terms, payments, and total interest can vary by lender policies and loan details. Consult a qualified advisor or lender for personalized information.