Loan Calculator - Payments & Amortization

How the Loan Calculator Works

1. 01Enter the loan amount, annual interest rate, and loan term
2. 02Choose between fixed-rate and variable-rate calculations
3. 03View your monthly payment, total interest paid, and total cost
4. 04Explore 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

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