How to use the loan calculator
- Enter the loan amount, annual interest rate and term in years.
- See the monthly payment, total interest and total cost instantly.
- Add an extra monthly payment to see how much interest and time you save.
- Scroll the full amortization schedule or download it as a CSV for Excel or Google Sheets.
Understanding amortization
With a fixed-rate loan your payment stays the same every month, but what it pays for changes. Early payments are mostly interest, because interest is charged on a large balance. As the balance falls, more of each payment goes to principal. That is why extra payments early in a loan save the most money.
Works for any fixed-rate loan
- Car loans and personal loans
- Mortgages (principal and interest part)
- Student loans and business loans
Related: Profit Margin Calculator, Currency Converter.
How interest rate and term affect your payment
A longer term lowers the monthly payment but increases the total interest. For example, borrowing 25,000 at 7.5% costs about 501 a month over 5 years with roughly 5,060 total interest, but about 347 a month over 8 years with roughly 8,320 total interest. A lower rate saves money on every payment, which is why comparing offers and improving your credit before applying can make a large difference.
Extra payments and early payoff
Extra payments reduce the principal immediately, so every following month accrues less interest. Even small amounts help: adding 50 a month to the example above shortens a 5-year loan by several months. Before paying extra, check whether your lender charges early repayment fees and make sure extra payments are applied to principal rather than future interest.
Using the amortization schedule
The schedule shows, month by month, how much of each payment goes to interest and how much to principal, and the remaining balance. Download it as CSV to open in Excel or Google Sheets, compare offers side by side, or plan when your balance will drop below a target such as the value of the car.
What this calculator doesn’t include
Results are estimates for fixed-rate loans with monthly payments. They don’t include origination fees, insurance, taxes, or variable-rate changes. Always compare the APR and the total cost in the official loan offer before signing.
Comparing two loan offers
Enter the first offer and download the CSV, then enter the second and download again. Comparing the total interest and total paid side by side shows which offer is cheaper over the whole term, which is not always the one with the lowest monthly payment.
Frequently asked questions
How is the monthly payment calculated?
With the standard amortization formula: payment = P × r / (1 − (1 + r)^−n), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly payments.
Does this include taxes, insurance or fees?
No. It covers principal and interest only. Mortgage payments often also include property tax, insurance and fees, so your real payment may be higher.
How much do extra payments save?
Any extra amount goes straight to principal, so less interest builds up every month after. Enter an extra monthly payment to see the interest saved and how many months sooner you finish.
Is the rate APR or interest rate?
Enter the nominal annual interest rate. APR includes some fees and may be slightly higher.