🏦 Loan Calculator
Calculate monthly payments, total interest, and see a full amortization schedule for any loan.
📊 Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|
📖 Understanding Loan Payments
Loan payments are calculated using the standard amortization formula. Each monthly payment is a fixed amount that covers both interest and principal. In the early years of a loan, more of your payment goes toward interest; over time, more goes toward paying down the principal balance.
The monthly payment formula is: M = P × [r(1+r)^n] / [(1+r)^n – 1], where P is the principal (loan amount), r is the monthly interest rate (annual rate / 12), and n is the total number of monthly payments.
❓ Frequently Asked Questions
A higher interest rate increases both your monthly payment and the total interest paid over the life of the loan. Even a 1% rate increase can add significantly to total interest over 30 years.
A 15-year loan has higher monthly payments but significantly lower total interest. A 30-year loan has lower monthly payments, making it more affordable month-to-month, but you pay much more interest overall.
📖 What Is a Loan Calculator?
A loan calculator estimates your monthly payments, total interest, and amortization schedule based on loan amount, interest rate, and term length. Essential for evaluating mortgages, auto loans, personal loans, and student loans before committing to debt.
Our calculator provides detailed amortization tables showing how each payment splits between principal and interest over the life of the loan. All calculations are local — your financial data stays private.
🚀 How to Use This Tool
- Enter the loan amount (principal)
- Set the annual interest rate
- Choose the loan term in months or years
- View monthly payment, total interest, and amortization schedule
💡 Tips & Best Practices
Financial Tip: Even small interest rate differences significantly impact total cost. A 0.5% rate reduction on a $300,000 30-year mortgage saves over $30,000 in interest. Consider extra principal payments to reduce total interest.