Loan Calculator
Calculate monthly payments and total interest
First Year Breakdown
| Month | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $99.55 | $500.00 | $99,900 |
| 2 | $100.05 | $499.50 | $99,800 |
| 3 | $100.55 | $499.00 | $99,700 |
| 4 | $101.05 | $498.50 | $99,599 |
| 5 | $101.56 | $497.99 | $99,497 |
| 6 | $102.06 | $497.49 | $99,395 |
| 7 | $102.57 | $496.98 | $99,293 |
| 8 | $103.09 | $496.46 | $99,190 |
| 9 | $103.60 | $495.95 | $99,086 |
| 10 | $104.12 | $495.43 | $98,982 |
| 11 | $104.64 | $494.91 | $98,877 |
| 12 | $105.16 | $494.39 | $98,772 |
Free Online Loan Calculator
Calculate your monthly loan payments, total interest paid, and view a detailed amortization schedule with our free online loan calculator. Whether you're planning a mortgage, car loan, personal loan, or student loan, our tool helps you understand exactly what you'll pay over the life of your loan.
Understanding your loan costs before borrowing is crucial for financial planning. Our calculator uses the standard amortization formula to show you not just your monthly payment, but how much of each payment goes toward principal versus interest. This insight helps you make informed decisions about loan terms and interest rates.
All calculations are performed instantly in your browser. Enter your loan amount, interest rate, and term to see results immediately. Adjust any variable to compare different loan scenarios and find the best option for your budget.
How Loan Amortization Works
Monthly Payment Calculation
Your fixed payment is calculated using the principal, interest rate, and term using the amortization formula.
Interest First
Each payment covers that month's interest first. Early payments have more interest, less principal.
Principal Reduction
After interest, the remainder reduces your principal. This decreases future interest charges.
Balance Reaches Zero
By the final payment, your balance is zero. You've paid off the principal plus all interest.
The Amortization Formula
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1]
- M = Monthly payment
- P = Principal (loan amount)
- r = Monthly interest rate
- n = Number of payments
Common Loan Types
Mortgage Loans
Home purchase loans typically range 15-30 years with rates from 3-8% depending on market conditions and credit score.
Auto Loans
Car loans usually run 3-7 years. Shorter terms mean higher payments but less total interest paid.
Personal Loans
Unsecured loans for various purposes, typically 2-7 years with higher interest rates than secured loans.
Student Loans
Education financing with various repayment options. Federal loans often have fixed rates and flexible terms.
Home Equity Loans
Borrow against your home equity with fixed rates. Often used for renovations or debt consolidation.
Business Loans
Financing for business expenses, equipment, or expansion. Terms and rates vary widely by lender and purpose.
Frequently Asked Questions
Why do I pay more interest at the start of my loan?
Interest is calculated on your remaining balance. With a large balance at the start, more of your payment goes to interest. As principal decreases, less goes to interest and more to principal.
Should I choose a shorter or longer loan term?
Shorter terms have higher monthly payments but lower total interest. Longer terms are more affordable monthly but cost more overall. Choose based on your budget and how quickly you want to be debt-free.
How does interest rate affect my total cost?
Even small rate differences significantly impact total cost. On a $200,000 30-year mortgage, 1% higher rate means about $40,000 more in interest over the loan term.
What is APR vs interest rate?
APR (Annual Percentage Rate) includes the interest rate plus fees and other costs, giving you the true cost of borrowing. The interest rate is just the percentage charged on the principal.
Can I pay off my loan early?
Most loans allow early payoff, but some have prepayment penalties. Check your loan terms. Extra payments go directly to principal, reducing total interest and shortening your term.
What credit score do I need for the best rates?
Generally, scores above 740 qualify for the best rates. Scores 670-739 get good rates, 580-669 fair rates. Below 580, you may face higher rates or loan denial.