Money calculator
Loan Calculator
Find your monthly payment, total interest, and year-by-year amortization for any fixed-rate loan.
Monthly payment
$0.00
Amortization schedule
Principal and interest paid each year, with the balance remaining at the end of the year.
How loan payments are calculated
Most mortgages, auto loans, personal loans, and student loans are amortized. You make the same payment every month, and each payment covers that month's interest first, with the rest reducing the balance. Early payments are mostly interest; later payments are mostly principal.
Loan payment formula
M is the monthly payment, P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments. With a 0% interest rate, the payment is simply the loan amount divided by the number of months.
Example: $250,000 mortgage at 6.5% for 30 years
The monthly rate is 6.5% ÷ 12, or about 0.5417%, across 360 payments. The monthly payment comes to about $1,580.17. Over 30 years you would pay roughly $318,861 in interest, bringing the total cost of the loan to about $568,861.
How extra payments save money
Any amount you pay above the required payment goes straight to the principal. A smaller balance means less interest accrues the following month, so extra payments shorten the loan and reduce the total interest far more than their size suggests. Adding $200 a month to the mortgage above would pay it off almost 8 years early and save roughly $97,000 in interest.
What this calculator does not include
For a mortgage, your real monthly housing payment usually also includes property taxes, homeowners insurance, and sometimes mortgage insurance or HOA fees. For auto loans, sales tax and fees may be rolled into the amount borrowed. Enter the total amount financed to account for those.
Frequently asked questions
What is amortization?
Amortization is paying off a loan with fixed, regular payments that cover interest and gradually reduce the principal until the balance reaches zero.
Why is most of my early payment interest?
Interest is charged on the remaining balance. When the balance is largest, at the start of the loan, the interest portion of each payment is largest too. As the balance falls, more of each payment goes to principal.
Does a shorter term always cost less?
A shorter term means higher monthly payments but less total interest because the balance is paid down faster and the lender charges interest for fewer months.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR also includes certain lender fees, so it is a better measure of the loan's total cost. This calculator applies the rate you enter directly to the balance.
Can I use this for a car loan or personal loan?
Yes. Any fixed-rate loan with equal monthly payments uses the same formula. Enter the amount financed, the rate, and the term in months or years.