Loan Calculator

Calculate your monthly loan payments, total interest, and view complete amortization schedule. Compare loan terms and see how extra payments can save you money. Free and easy to use.

Loan Details

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%
➕ Optional: Extra Payment
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Extra payments go directly toward principal, saving interest.

Your Results

Monthly Payment

$0

Total Amount Paid

$0

Total Interest

$0

Principal vs Interest

📊 View Amortization Schedule
Year Interest Paid Principal Paid Ending Balance

How to Use This Calculator

Our loan calculator helps you make informed borrowing decisions by showing exactly how much your loan will cost. Enter your loan details to see monthly payments, total interest, and a complete amortization schedule. Perfect for mortgages, auto loans, personal loans, student loans, and business financing.

📝 Step-by-Step Instructions:

  1. 1. Enter Loan Amount - The total amount you need to borrow. For example, if you're buying a $200,000 home with a $40,000 down payment, enter $160,000.
  2. 2. Set Loan Term - How many years you'll take to repay. Common terms: 15-30 years (mortgages), 3-5 years (auto loans), 1-5 years (personal loans).
  3. 3. Input Interest Rate - The annual percentage rate (APR) for your loan. Check with your lender for current rates based on your credit score.
  4. 4. View Results - See your monthly payment, total amount paid, and total interest instantly. All calculations update in real-time as you adjust inputs.

🌟 Real-World Use Cases:

Car Loan Calculation

You're buying a $35,000 car with 5% interest over 5 years.

Monthly payment: $660.63 | Total interest: $4,637.58

Personal Loan Planning

Need $15,000 for home renovation with 9% APR over 3 years.

Monthly payment: $477.20 | Total interest: $2,179.20

Student Loan Repayment

$50,000 student loan at 4.5% interest over 10 years.

Monthly payment: $518.95 | Total interest: $12,273.63

Small Business Loan

$100,000 business loan at 7% APR over 7 years.

Monthly payment: $1,453.59 | Total interest: $22,101.20

Debt Consolidation

Consolidating $25,000 credit card debt at 12% into 6% loan over 4 years.

Save thousands in interest by consolidating!

💡 Pro Tips:

  • Use extra payment feature to see how much you can save
  • Shorter loan terms have higher payments but lower total interest
  • Even $50-100 extra monthly can save thousands in interest
  • Compare different terms to find your ideal balance
  • Check amortization schedule to understand payment breakdown

⚠️ Important Notes:

  • Results are estimates - actual rates may vary by lender
  • Does not include fees, insurance, or taxes
  • Extra payments go directly toward principal
  • All calculations happen in your browser (private)
  • Compare multiple scenarios before committing

💰 Money-Saving Tip: Paying just $100 extra per month on a $200,000, 30-year mortgage at 6% can save you over $45,000 in interest and pay off your loan 4 years early! Use the "Optional: Extra Payment" feature to see your potential savings.

Understanding Loans

A loan is money borrowed from a lender that you agree to repay with interest over a set period. Understanding how loans work helps you make smarter financial decisions.

Loan Payment Formula

The monthly payment is calculated using the following formula:

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]

Where: P = Principal, r = Monthly interest rate, n = Number of months

Compare Loan Terms

Here's how different loan terms affect a $100,000 loan at 6% interest:

Loan Term Monthly Payment Total Interest
10 years $1,110 $33,220
15 years $844 $51,894
20 years $716 $71,943
30 years $600 $115,838

Key Takeaway: Shorter loan terms have higher monthly payments but save you significantly on interest. A 10-year loan saves over $82,000 in interest compared to a 30-year loan on the same $100,000 borrowed!

Frequently Asked Questions

What is loan amortization?
Loan amortization is the process of paying off a debt over time through regular payments. Each payment includes both principal (the loan amount) and interest. Early payments are mostly interest, while later payments pay more principal. An amortization schedule shows you exactly how each payment is split between principal and interest over the life of the loan.
How is interest calculated on a loan?
Interest is calculated on the remaining loan balance (principal) each payment period. The formula is: Interest = Principal Balance × (Annual Interest Rate / 12). For example, if you owe $100,000 at 6% annual rate, your first month's interest would be $100,000 × (0.06/12) = $500. As you pay down the principal, the interest portion decreases.
Should I choose a shorter or longer loan term?
Shorter terms (10-15 years) have higher monthly payments but lower total interest paid. Longer terms (20-30 years) have lower monthly payments but higher total interest. Choose a shorter term if you can afford higher payments and want to save on interest. Choose a longer term for more affordable monthly payments and financial flexibility. You can always make extra payments to pay off a long-term loan faster.
How much can I save with extra payments?
Extra payments go directly toward your principal balance, reducing the total interest you'll pay and shortening your loan term. For example, on a $200,000, 30-year mortgage at 6%, paying just $100 extra per month saves over $45,000 in interest and pays off the loan 4 years early. Even small extra payments make a significant difference over time.
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal loan amount, expressed as a percentage. APR (Annual Percentage Rate) includes the interest rate PLUS other loan costs like origination fees, discount points, and other charges, expressed as a yearly rate. APR gives you a more complete picture of the true cost of the loan. Always compare APRs when shopping for loans, not just interest rates.