Loan Calculator
Calculate monthly payments and view your complete amortization schedule
Plan any loan with our free loan calculator. Enter your loan amount, interest rate, and term to see your exact monthly payment, total interest costs, and a complete amortization schedule. Compare different term options to find the best fit for your budget and savings goals. Works for mortgages, auto loans, personal loans, and student loans.
Open Source & Transparent
All calculations are open source and verifiable on GitHub. We believe in transparency and welcome contributions to improve our tools.
Monthly Payment
High Interest Cost30 Year Loan
$1,580
Total Interest
$319K
Total Cost
$569K
Principal
$250K
Interest Rate
6.5%
Loan Details
Monthly Payment
$1,580
Total Interest
$319K
Interest %
127.5%
Total Payments
360 months
Payment Summary
Key Insights
Interest Cost
You'll pay 127.5% of the loan amount in interest
First Payment Split
85.7% goes to interest
Final Payment Split
99.5% goes to principal
Payoff Date
December 2055
Save on Interest
- 1.Make extra principal payments when possible
- 2.Consider bi-weekly payments (26 half-payments = 13 monthly)
- 3.Refinance if rates drop 1% or more
- 4.Choose shorter term if you can afford higher payments
Understanding Loan Amortization
Loan amortization is the process of paying off a loan through regular, fixed payments over time. Each payment you make contains two components: principal (which reduces your loan balance) and interest (the cost of borrowing). Understanding how amortization works helps you make smarter borrowing decisions and find opportunities to save money.
The Loan Payment Formula
Your monthly payment is calculated using the standard amortization formula:
- M = Monthly payment
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
Principal vs Interest: How Payments Change Over Time
Early Payments
In the beginning, most of your payment goes toward interest because the balance is highest. On a 30-year mortgage, your first payment might be 70-80% interest. This is why the balance seems to drop slowly at first.
Later Payments
As your balance decreases, more of each payment goes to principal. By the end of your loan, almost the entire payment reduces your balance. Your final payments might be 95%+ principal.
Loan Types This Calculator Handles
Mortgages
15-year, 30-year, or custom term home loans
Auto Loans
New or used car financing, typically 3-7 years
Personal Loans
Unsecured loans for consolidation, home improvement
Student Loans
Federal or private education loans with fixed rates
5 Ways to Save on Loan Interest
Choose a shorter loan term
A 15-year mortgage can save you more than half the interest of a 30-year loan
Make extra principal payments
Even an extra $100/month can save thousands and shorten your loan by years
Shop for the best interest rate
A 0.5% difference can mean $10,000+ in savings over the life of a mortgage
Consider bi-weekly payments
Paying every 2 weeks results in 26 half-payments = 13 full monthly payments per year
Refinance when rates drop
If rates fall 1% or more, refinancing could save significant money (factor in closing costs)
Important Considerations
- • This calculator shows principal and interest only. Actual mortgage payments may include property taxes, homeowners insurance, PMI, and HOA fees.
- • Interest rates shown are for illustration. Your actual rate depends on credit score, loan type, down payment, and market conditions.
- • Variable-rate loans (ARMs) have payments that can change. This calculator is for fixed-rate loans.
- • Always consult with a financial advisor or lender for personalized advice on major borrowing decisions.
Frequently Asked Questions
What interest rate should I expect for my loan? ▼
Interest rates vary significantly by loan type and your financial profile. As of 2024, typical ranges are: Mortgages (6-8%), Auto loans (5-10%), Personal loans (8-15%), Student loans (5-12%). Your credit score, loan-to-value ratio, and debt-to-income ratio all affect your rate. Always shop multiple lenders for the best rate.
How do extra payments reduce my loan? ▼
Extra payments go directly toward your principal balance, reducing the amount on which future interest is calculated. This creates a snowball effect: lower balance means less interest each month, so more of your regular payment goes to principal. Even small extra payments early in the loan have a significant impact because they reduce interest charges for all remaining payments.
Is there a prepayment penalty on my loan? ▼
Most modern loans, especially mortgages made after 2014, don't have prepayment penalties. However, some auto loans and personal loans may have them. Always check your loan agreement. If there's a penalty, it's usually a percentage of the remaining balance or a certain number of months' interest, and often only applies within the first few years.
What's the difference between APR and interest rate? ▼
The interest rate is the basic cost of borrowing expressed as a percentage. APR (Annual Percentage Rate) includes the interest rate plus any fees and other costs associated with the loan, spread over the loan term. For mortgages, APR includes points, origination fees, and other closing costs. APR gives you a more complete picture of the true cost of borrowing, making it easier to compare loan offers from different lenders.
How do I read the amortization schedule? ▼
Each row represents one monthly payment. The columns show: Payment number/month, total payment amount, amount going to principal (reduces your balance), amount going to interest (cost of borrowing), and remaining balance. Early payments are heavy on interest; later payments are heavy on principal. Rows highlighted in blue mark the end of each year, making it easy to track year-over-year progress.
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