Enter your loan amount, interest rate and term to instantly get your monthly payment, total interest, payoff date and a full amortization schedule.
| Period | Payment | Principal | Interest | Balance |
|---|
A loan calculator works out your fixed monthly payment from three numbers — the loan amount, the annual interest rate, and the loan term — using the formula M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]. It also breaks the total cost into principal and interest, and lays out a month-by-month amortization schedule so you can see exactly how the balance shrinks over time.
This tool works for personal loans, auto loans, business loans, student loans, or a simple mortgage estimate. Follow these steps to get an accurate result:
Every fixed-rate, fully amortizing loan uses the same underlying formula to calculate the monthly payment:
| Symbol | Meaning |
|---|---|
| M | Monthly payment |
| P | Principal (loan amount) |
| r | Monthly interest rate (annual rate ÷ 12) |
| n | Total number of monthly payments (years × 12) |
M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
For example, a $25,000 loan at 6.5% annual interest over 5 years produces a monthly rate of 0.5417%, 60 total payments, and a fixed monthly payment near $489 — of which the earliest payments are mostly interest and the latest payments are mostly principal.
Unsecured personal loans typically run 2–7 years with fixed rates. Use this calculator to compare offers by entering each lender's rate and term side by side.
Car loans are usually 3–7 years. Add the upfront fees field to include documentation or dealer fees in your true total cost.
For a simple fixed-rate mortgage estimate, enter the loan principal, rate, and term in years — for full property tax and insurance escrow, use a dedicated mortgage calculator.
Both work the same way mathematically; just enter the rate and term stated in your loan agreement, and use the extra payment field to model faster payoff strategies.
Interest is charged only on the remaining balance each month. When an extra payment reduces that balance early, every future month accrues interest on a smaller number — which compounds into real savings and a shorter loan term. The "Interest Saved" stat above shows this effect the moment you add an extra monthly or one-time payment.
Monthly payment equals the loan amount multiplied by the monthly interest rate factor, divided by that same factor minus one — expressed as M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]. This calculator applies that formula automatically.
It's a table listing every payment over the loan's life, split into principal and interest, along with the balance remaining after each payment. Early on, most of each payment covers interest; later, most of it covers principal.
Yes. Extra payments applied to principal lower the balance that future interest is calculated on, which shortens the loan term and reduces total interest paid.
Loan term is how long the rate and contract terms apply; amortization period is the total time to pay the loan off in full. For most personal and auto loans, and standard mortgages, they're the same.
No — a longer term lowers the monthly payment but increases total interest paid, since interest accrues over more months. A shorter term raises the payment but reduces total interest.
This calculator provides estimates for informational purposes only and does not constitute financial advice. Confirm exact figures with your lender before making decisions.