Loan Calculator
Work out the monthly payment and total cost of any fixed-rate loan. Enter the amount, rate and term to see your payment, total interest and full amortization schedule — and add an extra monthly payment to see how much interest you save and how much sooner you finish.
$420.04 /mo
Base payment: $420.04 · Total interest: $5,202 · Total paid: $25,202
Yearly amortization schedule
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $1,760 | $3,281 | $16,719 |
| 2 | $1,434 | $3,606 | $13,113 |
| 3 | $1,076 | $3,964 | $9,148 |
| 4 | $683 | $4,358 | $4,790 |
| 5 | $250 | $4,790 | $0 |
Standard amortization. Extra payments go straight to principal, cutting interest and term. How we calculate →
How a loan payment is calculated
A fixed-rate loan is repaid in equal monthly payments through amortization. Each payment covers the interest due that month plus a slice of principal; early on most of it is interest, and over time the balance tips toward principal. The payment comes from the standard formula M = P · r(1+r)n / ((1+r)n−1), where P is the amount, r the monthly rate and n the number of months. Enter your amount, rate and term above to see your payment and the full schedule.
Interest rate vs APR
The interest rate is the cost of borrowing the principal; the APR also folds in certain fees, so it's a truer all-in cost and the better number to compare loans by. For a loan with no fees the two are the same. This calculator applies the rate you enter directly to the balance — enter your APR for the most realistic total cost.
How much interest will you pay?
Total interest depends on three things: how much you borrow, your rate, and how long you take to repay. A longer term lowers the monthly payment but raises total interest, sometimes dramatically. The results above show your total interest and total amount paid, and the balance chart shows how the debt falls over time — so you can weigh a comfortable payment against the lifetime cost.
Extra payments: pay off faster, pay less interest
Anything you pay above the scheduled amount goes straight to principal, which shrinks the balance the interest is charged on. Even a small monthly extra can cut months or years off the term and save a meaningful amount of interest. Add an extra monthly amount above and the calculator shows your new payoff time and exactly how much interest you save versus the standard schedule — the comparison most loan calculators leave out.
Loan term: shorter vs longer
A shorter term means higher monthly payments but far less total interest and faster freedom from debt; a longer term eases the monthly cost but you pay more overall and stay in debt longer. There's no single right answer — it depends on your budget and goals. Try different terms above and watch both the monthly payment and the total interest move together.
Reading your amortization schedule
The yearly schedule above breaks down, for each year, how much of your payments went to interest versus principal and what balance remains. It's the clearest way to see the front-loaded nature of interest — and why extra payments early in the loan have the biggest effect. You can export the full schedule to CSV for your records or a spreadsheet.
Frequently asked questions
How is a loan payment calculated?
A fixed-rate loan uses amortization: the monthly payment is M = P · r(1+r)^n / ((1+r)^n − 1), where P is the amount borrowed, r the monthly interest rate and n the number of months. Each payment covers that month's interest plus some principal. Enter your figures above for the exact payment.
How much interest will I pay on a loan?
It depends on the amount, the rate and the term. A higher rate or longer term means more total interest. The calculator above shows your total interest and total amount paid, and a chart of how the balance falls over the life of the loan.
How do extra payments affect my loan?
Extra payments go entirely to principal, lowering the balance that interest is charged on. That shortens the term and reduces total interest. Add an extra monthly amount above and the calculator shows how many months you save and how much interest you avoid versus the standard schedule.
What is amortization?
Amortization is paying off a loan in equal installments over time, where each payment is split between interest and principal. Early payments are mostly interest; later ones are mostly principal. The yearly schedule above shows the split for each year of your loan.
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal; the APR also includes certain fees, making it a fuller measure of the loan's cost and the better figure for comparing offers. With no fees, the two are equal. Enter your APR above for the most realistic total cost.
Does a longer loan term cost more?
Yes. A longer term lowers your monthly payment but increases the total interest you pay, sometimes substantially, because you're borrowing for longer. Compare terms above to see the trade-off between a comfortable payment and the lifetime cost.
How can I pay off my loan faster?
Pay more than the minimum, make biweekly half-payments, or put windfalls toward the principal. Because extra money reduces the balance immediately, it saves compounding interest. Use the extra-payment field above to see your faster payoff date and interest savings.
Can I get an amortization schedule?
Yes — the calculator shows a year-by-year schedule of interest, principal and remaining balance, and you can export the full schedule to CSV for a spreadsheet or your records.
Researched & verified by the Calcuris Data & Research Team. How we build and check our tools →