Loan Calculator
Calculate your monthly payment and see the full amortization schedule.
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
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Request a ToolHow to Use the Loan Calculator
This calculator shows your monthly payment, total cost, and a full amortization breakdown for any fixed-rate loan. Follow these steps to get started:
- Enter your loan amount. This is the total amount you plan to borrow. The default is $25,000, but you can enter any amount from a small personal loan to a large auto purchase.
- Set the annual interest rate. Enter the rate as a percentage. For example, 6.5% is typical for a personal loan with good credit. Check your lender's offer for your exact rate.
- Choose the loan term. Enter the number of years you will take to repay the loan. Shorter terms mean higher monthly payments but less total interest. Longer terms lower the payment but increase total cost.
- Review your results. Your monthly payment appears instantly, along with the total amount paid and total interest. Scroll down to see the month-by-month amortization schedule showing exactly how each payment is split between principal and interest.
Results update as you type. Use the Share button to send a pre-filled link to someone, or Copy to grab the result for your records.
About the Loan Calculator
Every fixed-rate loan uses a process called amortization. Your monthly payment stays the same each month, but the split between principal and interest changes over time. In the early months, most of your payment goes toward interest. As the balance shrinks, more of each payment goes toward principal. By the final month, nearly the entire payment reduces your balance.
This pattern means that making extra payments early in the loan saves more money than the same extra payments made later. The amortization schedule below the results lets you see this shift month by month. Understanding it can help you decide whether to pay extra, refinance, or choose a different loan term.
This calculator works for personal loans, auto loans, and any other fixed-rate installment loan. All calculations run in your browser. No data is sent or stored anywhere.
Frequently Asked Questions
How is the monthly payment calculated?
The calculator uses the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This produces a fixed payment amount that fully pays off the loan by the end of the term, with interest charged on the remaining balance each month.
What is amortization?
Amortization is the process of paying off a loan through regular, equal installments over a set period. Each payment covers two parts: interest on the current balance and a portion of the principal. Early in the loan, interest takes the larger share. Over time, that ratio reverses as the balance decreases. The amortization schedule in this calculator shows you exactly how much of each monthly payment goes to interest versus principal.
Does this work for all types of loans?
This calculator works for any fixed-rate installment loan, including personal loans, auto loans, student loans, and business loans. It assumes a constant interest rate and equal monthly payments over the life of the loan. It does not apply to revolving credit (like credit cards), adjustable-rate loans, or interest-only loans, which use different repayment structures.
How can I reduce my total interest?
There are three main ways to reduce total interest on a loan. First, choose a shorter loan term. A 3-year term costs significantly less in interest than a 5-year term for the same amount, though payments will be higher. Second, shop for a lower interest rate by comparing lenders and improving your credit score before applying. Third, make extra payments toward principal whenever possible, especially early in the loan when interest charges are highest.