Loan Calculator
Monthly payment, total interest and a year-by-year schedule
Year-by-year payment schedule
| Period | Principal | Interest | Balance left |
|---|
How to Use
- 1Enter what you are borrowing and the APR the lender quoted.
- 2Set the term in years or months.
- 3Read the monthly payment, total interest and payoff date.
- 4Add an extra monthly payment to see the interest and time it saves.
The Formula
- Monthly paymentM = P · i / (1 − (1+i)⁻ⁿ)
- i (monthly rate)APR ÷ 12 ÷ 100
- n (payments)Years × 12
- Total interest(M × n) − P
Quick Examples
Tap an example to load it above.
Everything about the Loan Calculator
What you actually pay, where the interest goes, and how to pay less of it.
This loan calculator works out the monthly payment on any amortised loan, whether car, personal, student or business, then shows the total interest, the payoff date and a full year-by-year schedule of where every payment goes.
An amortised loan is one you repay in equal instalments until the balance reaches zero. Each payment is split: part covers the interest that accrued this month, the rest chips away at the principal. Because the interest is charged on the remaining balance, that split shifts month after month.
Why early payments feel wasted: in the first year of a long loan most of your payment is interest, because the balance is still near its maximum. By the final year almost all of it is principal. This is also why an extra payment made early saves far more than the same payment made late.
APR is not the interest rate
The interest rate is what accrues on the balance. The APR folds in origination fees, broker fees and points, so it is the number to compare offers with. If a lender quotes both and they differ, the gap is fees, so enter the APR here for the truer cost.
| Loan type | Typical term | Rate depends most on |
|---|---|---|
| Auto loan | 3 to 7 years | Credit score, new vs used |
| Personal loan | 2 to 7 years | Credit score, income |
| Student loan | 10 to 25 years | Federal vs private |
| Credit card balance | Open-ended | Card APR, usually the highest |
| Home mortgage | 15 to 30 years | Market rates, down payment |
For a house, use the mortgage calculator instead, because it handles the down payment and loan-to-value split that a general loan does not have.
Four ways to pay less interest
- 1Shorten the term
A shorter loan raises the monthly payment but cuts total interest sharply, because you are borrowing the money for fewer months. Compare 3 years against 5 on the same amount and watch the interest tile.
- 2Pay a little extra every month
Extra money goes straight to principal. Put $100 a month into the extra field and the calculator shows exactly how many months it removes and how much interest it saves.
- 3Improve the rate, not just the payment
Dealers often quote a low monthly payment by stretching the term. A 7-year car loan at 9% costs far more than a 4-year loan at 9%, even though the monthly figure looks friendlier.
- 4Check for prepayment penalties
Most personal and auto loans allow overpayment freely, but some charge for it. Confirm before you start overpaying, or the saving is cancelled out.
Reading the schedule
Open the year-by-year table under the results. The Principal column is real debt cleared, the Interest column is the cost of borrowing, and Balance left is what you would still owe if you settled at the end of that year, which is useful when deciding whether to refinance or trade in a car mid-loan.
Frequently Asked Questions
How is a monthly loan payment calculated?
With the annuity formula M = P · i / (1 − (1+i)⁻ⁿ), where P is the amount borrowed, i is the APR divided by 12 and 100, and n is the number of monthly payments. A $25,000 loan at 7.5% over 5 years gives i = 0.00625 and n = 60, so the payment is about $501.
How much interest will I pay in total?
Total interest is the sum of every payment minus the amount you borrowed. The "Total interest" tile shows it in dollars and the note under the payment shows it as a share of everything you hand over, which makes two offers far easier to compare than the monthly figure alone.
Does paying extra each month really help?
Yes, and more than most people expect, because every extra dollar goes straight to principal and stops accruing interest for the rest of the term. Enter an amount in "Extra monthly payment" and the calculator shows the months removed and the interest saved. Early extra payments save the most.
What is the difference between the interest rate and the APR?
The interest rate is charged on your balance; the APR also includes origination and broker fees, so it reflects the true annual cost. When comparing lenders, always compare APRs, because a lower rate with heavy fees can be the more expensive loan.
Should I choose a longer term for a lower payment?
Only if the shorter payment genuinely does not fit your budget. Stretching a loan lowers the monthly figure but raises total interest, because you owe the money for longer. Run both terms here and compare the "Total interest" tile before signing.
Can I use this for a mortgage or a credit card?
For a fixed-rate home loan use the mortgage calculator, which handles the down payment. For a credit card, enter the balance, the card APR and the number of months you want to clear it in. The payment shown is what it takes to be debt-free by then, assuming you stop adding new charges.
Why does the balance fall so slowly at the start?
Interest is charged on the balance still outstanding, which is at its largest on day one. In the first year most of each payment covers that interest and only a little clears principal. The year-by-year schedule makes the crossover point easy to see.
Is the loan calculator free and is my data stored?
It is completely free with no sign-up, and every figure is calculated inside your browser, so nothing about your loan is sent to a server or saved anywhere.