Finance
Loan Calculator
Calculate monthly payments, total interest, and view a full amortization schedule. Compare loan scenarios and see how extra payments save you money.
Extra Payments (optional)
Enter loan details and click Calculate
Loan A
Loan B
How is this calculated?
Monthly Payment (M) = P × [r(1+r)^n] / [(1+r)^n – 1]
Where:
P = Principal (loan amount)
r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
n = Total number of payments (term in months)
Total Interest = (M × n) – P
Total Payment = M × n
Payoff Date = Start Date + n monthsFAQ
Frequently asked questions about loans
How is the monthly loan payment calculated?
The monthly payment uses 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.
What is an amortization schedule?
An amortization schedule is a table showing each monthly payment broken into principal and interest portions, along with the remaining balance. Early payments are mostly interest; later payments are mostly principal.
How do extra payments reduce my loan cost?
Extra payments go directly toward the principal, reducing the balance faster. This shortens your loan term and dramatically reduces total interest paid over the life of the loan.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees and other costs, giving a more complete picture of the loan cost.
Should I choose a shorter or longer loan term?
Shorter terms have higher monthly payments but much less total interest. Longer terms have lower payments but cost significantly more overall. Choose based on your monthly budget and total cost tolerance.
Is this loan calculator free to use?
Yes, completely free with no sign-up required. All calculations happen in your browser — your financial data is never sent to any server.