Loan Calculator — Payments & Amortization
Calculate monthly loan payments, total interest, and full amortization schedule. Compare two loan scenarios side by side. Free tool.
Loan Calculator with Amortization Schedule
Calculate your monthly loan payments, total interest paid, and see a detailed amortization schedule. Works for mortgages, car loans, personal loans, and student loans.
Understanding your loan payments helps you make informed financial decisions. Compare different loan terms and interest rates to find the best option.
In a standard amortized loan, early payments are predominantly interest. On a 30-year $300,000 mortgage at 6.5%, the first payment is $1,896 — of which $1,625 (86%) goes to interest and only $271 to principal. By year 20, the split reverses. Understanding this structure explains why extra principal payments early in a loan have an outsized impact on total interest paid.
The Annual Percentage Rate (APR) includes the base interest rate plus origination fees, closing costs, and other charges, providing the true cost of borrowing. Always compare loans by APR rather than the nominal rate. A loan at 6.0% with $5,000 in fees can be more expensive than one at 6.25% with no fees, depending on the loan term.
Use the loan comparison feature to evaluate different scenarios side by side. Common comparisons include 15-year versus 30-year terms (shorter terms save significantly on interest but have higher monthly payments), fixed versus adjustable rates, and the effect of making extra monthly payments toward principal.
How the Loan Calculator Works
- Enter the loan amount, annual interest rate, and loan term
- Choose between fixed-rate and variable-rate calculations
- View your monthly payment, total interest paid, and total cost
- Explore the full amortization schedule showing principal vs. interest per payment
Understanding Loan Amortization
In an amortized loan, early payments are mostly interest while later payments are mostly principal. Making extra payments toward the principal can significantly reduce total interest and shorten the loan term. For example, paying just 50 extra per month on a 200,000 mortgage can save tens of thousands in interest. Always compare the Annual Percentage Rate (APR), which includes fees, rather than just the nominal interest rate.
When to Use the Loan Calculator
Use this tool when considering a mortgage, car loan, personal loan, or student loan. It calculates your exact monthly payment, shows how much total interest you will pay, and generates an amortization schedule so you can see the principal versus interest breakdown for every payment. Use the comparison feature to evaluate different loan terms side by side.
Common Use Cases
- •Calculating monthly mortgage payments before house hunting
- •Comparing 15-year versus 30-year loan terms to understand total interest costs
- •Estimating car loan payments with different down payment amounts
- •Evaluating the impact of extra monthly payments on total interest and payoff date Compound Interest Calculator — Free & Visual
Expert Tips
- ✱Look at the amortization schedule to see that early payments are mostly interest — this explains why extra principal payments early on save the most money.
- ✱Use the comparison feature to test different scenarios: higher down payment vs. lower rate, 15-year vs. 30-year, fixed vs. variable.
- ✱Always compare loans by APR rather than the nominal interest rate, since APR includes fees and reflects the true cost.
Frequently Asked Questions
- The monthly payment is calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal, r is the monthly interest rate, and n is the total number of payments. This produces equal monthly payments where the interest-to-principal ratio shifts gradually over the loan term.
- A 15-year mortgage has higher monthly payments but saves significantly on total interest. On a $300,000 mortgage at 6.5%, the 15-year option costs about $2,613/month versus $1,896/month for 30 years, but saves over $200,000 in total interest. Choose based on your monthly budget and long-term financial goals.
- Even small extra payments toward principal have a large impact. Paying $100 extra per month on a $300,000, 30-year mortgage at 6.5% saves about $64,000 in interest and pays off the loan 5 years early. Extra payments reduce the principal faster, which means less interest accrues in subsequent months.
- The Annual Percentage Rate (APR) includes the base interest rate plus origination fees, closing costs, and other charges, reflecting the true annual cost of borrowing. Two loans with the same interest rate but different fees will have different APRs. Always compare loans by APR for an accurate cost comparison.
How is the monthly payment calculated?▾
Should I choose a 15-year or 30-year mortgage?▾
How much can I save by making extra payments?▾
What is APR and how is it different from interest rate?▾
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