Loan Calculator
Estimate monthly payments, compare loan terms, and understand the true cost of borrowing. Our free loan calculator gives you instant, transparent results for mortgages, auto loans, personal loans, and more.
- Calculate monthly payments based on loan amount, interest rate, and term.
- See total interest paid and amortization schedules at a glance.
- Compare different scenarios to find the loan option that works best for you.
No signup required · 100% browser-based · Instant results
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Loan Payment Calculator
How it works
We calculate your monthly payment using the standard amortization formula, then show you the total interest and complete payment breakdown. Use this to compare loan options and plan your finances.
Interactive Tool
Calculate your loan payments in seconds
Enter your loan details below to instantly see your monthly payment, total interest, and amortization schedule. Adjust the values to compare different loan scenarios.
Loan Details
The total amount you are borrowing
The yearly interest rate on your loan
How long you have to repay the loan
Quick Presets
Monthly Payment
Your monthly payment will be
$1,899.33
Payment breakdown
Total Interest Paid
$383,794.20
Total Amount Paid
$683,794.20
Interest Cost
Over the life of your loan, you will pay 55.8% of the original loan amount in interest. This is why paying extra principal early can save significant money.
Visual Analysis
Payment breakdown and loan analysis
Visualize how your payments are split between principal and interest, and see the impact of different loan terms on your total cost.
Principal vs Interest Over Time
What this shows:
This chart displays how your monthly payment is split between principal and interest. Early payments are mostly interest, while later payments are mostly principal. This is why paying extra early saves the most money.
Remaining Loan Balance
What this shows:
This line chart shows how your loan balance decreases over time. Notice how the balance decreases slowly at first, then more rapidly as you pay down the principal.
Cumulative Payments Over Time
What this shows:
This chart displays the total amount you've paid (principal + interest) as a percentage of your original loan. The gap between the line and 100% represents total interest paid.
Term Comparison
What this shows:
Compare total interest paid and monthly payments across different loan terms at your selected interest rate. Shorter terms save significant interest but have higher monthly payments.
Education
Understanding loan mathematics
Learn the formulas and concepts behind loan calculations to make informed financial decisions.
The Amortization Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
- M = Monthly payment
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of payments (years × 12)
Example: For a $300,000 loan at 6.5% for 30 years: M = 300,000 × [0.00542(1.00542)^360] / [(1.00542)^360 - 1] = $1,899.33
How Interest is Calculated
Monthly Interest = Remaining Balance × Monthly Interest Rate
Each month, interest is calculated on your remaining balance. As you pay down the principal, the interest portion of your payment decreases.
First Month Example (30-year, $300K, 6.5%):
Monthly Rate = 6.5% ÷ 12 = 0.542%
Interest = $300,000 × 0.00542 = $1,625
Principal = $1,899.33 - $1,625 = $274.33
Total Interest Paid
Total Interest = (M × n) - P
Where:
- M = Monthly payment
- n = Total number of payments
- P = Original principal
Example: ($1,899.33 × 360) - $300,000 = $683,798.80 - $300,000 = $383,798.80 total interest
Amortization Schedule
An amortization schedule shows each payment broken down into principal and interest components for the entire loan term.
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1,899.33 | $274.33 | $1,625.00 | $299,725.67 |
| 2 | $1,899.33 | $275.82 | $1,623.51 | $299,449.85 |
| ... | ... | ... | ... | ... |
| 360 | $1,899.33 | $1,894.47 | $4.86 | $0.00 |
Examples
Real-world loan scenarios
See how different loan types and amounts compare in real-world situations.
Home Mortgage
Typical 30-year fixed mortgage on a $350K home purchase
Auto Loan
Typical 6-year car loan with good credit
Personal Loan
Typical 5-year unsecured personal loan
Impact of Extra Payments
See how paying an extra $200/month on a $300K mortgage can save you thousands:
30 years
$383,798.80 interest
25.4 years
$274,559.20 interest
Savings:
$109,239.60
Plus 4.6 years of payments avoided
15-Year vs 30-Year Mortgage
Comparing a $300K mortgage at 6.5% interest:
Monthly: $1,899.33
$383,798.80 interest
Monthly: $2,765.82
$197,847.60 interest
Interest Savings:
$185,951.20
But monthly payment is $866.49 higher
How it works
Understanding loan calculations
Our loan calculator uses the standard amortization formula to determine your monthly payment and total interest cost. Here is how it breaks down.
Input Your Details
Enter the loan amount you are borrowing, the annual interest rate, and the loan term in years. These three values determine everything else.
Calculate Payment
We apply the amortization formula to calculate your fixed monthly payment. This payment stays the same for the entire loan term.
View Results
See your monthly payment, total interest paid, and complete amortization schedule. Compare different scenarios to find the best loan option.
Pro Tips
How to use the loan calculator effectively
Compare Multiple Scenarios
Try different loan amounts, interest rates, and terms to see how each variable affects your monthly payment. This helps you find the most affordable option.
Understand Interest Impact
Notice how a small change in interest rate or loan term can significantly impact your total interest paid. Even a 0.5% difference adds up over time.
Consider Shorter Terms
While shorter loan terms mean higher monthly payments, they dramatically reduce total interest paid. Calculate both options to weigh affordability against long-term savings.
Factor in Extra Costs
Remember that your monthly payment shown here is principal and interest only. Budget separately for property taxes, insurance, HOA fees, and other costs.
Plan for Extra Payments
Even small extra payments toward principal can shorten your loan term and save thousands in interest. See how a few hundred dollars extra per month compounds.
Check Your Credit Score Impact
Your credit score affects the interest rate you qualify for. A better score can save you thousands over the life of a loan. Use this calculator to see the real impact.
FAQ
Frequently asked questions about loans
Make informed decisions
Calculate your loan payments with confidence
Use our free loan calculator to understand the true cost of borrowing before you commit to any loan. Compare different scenarios and make the best financial decision for your situation.
No signup required · 100% browser-based · Instant results