Loan Calculator
Work out the monthly payment, total interest and payoff schedule for any fixed-rate loan.
Amortization schedule
| Month | Payment | Principal | Interest | Balance |
|---|
How the loan payment is calculated
Most personal loans, car loans and student loans are amortizing loans: you pay the same amount every month, and each payment covers that month's interest first, with the rest going to the balance. Early payments are mostly interest. Later payments are mostly principal.
The monthly payment comes from the standard amortization formula:
M = P × i ÷ (1 − (1 + i)−n)
where P is the amount borrowed, i is the monthly interest rate (the yearly rate divided by 12), and n is the number of monthly payments.
Example
Borrowing $20,000 at 7.5% for 5 years (60 payments) gives a monthly payment of about $400.76. Over the life of the loan you pay about $4,046 in interest. Adding just $50 a month pays it off about 7 months early and saves several hundred dollars.
Tips for a cheaper loan
- Shorter terms cost less in total, even though the monthly payment is higher.
- Compare APR, not just rate. APR includes fees like origination charges.
- Extra payments go straight to principal, so even small ones cut the total interest.