Loan
calculator.
Find the monthly payment on a car loan, personal loan or mortgage principal, the total interest you will pay, a year-by-year amortization schedule, and how much paying extra each month saves.
Where each
payment goes.
- Monthly payment = P × i ÷ (1 − (1 + i)^−n), where P is the amount borrowed, i the annual rate ÷ 12 and n the number of months.
- Each month interest = balance × i; the rest of the payment reduces the balance.
- Payments and interest are rounded to the cent like a lender’s statement; the final payment absorbs any difference.
- Extra payments go straight to principal, shortening the loan.
How is a loan payment calculated?
An amortizing loan has equal monthly payments chosen so the balance reaches zero after the last one. With a monthly rate i and n payments, the payment is P × i ÷ (1 − (1 + i)^−n). $25,000 at 7.5% for five years is $500.95 a month. At 0% the payment is simply the amount divided by the number of months.
Why early payments are mostly interest
Interest is charged on the outstanding balance, which is largest at the start. In the first month of a $200,000, 30-year loan at 6%, $1,000 of the $1,199.10 payment is interest and only $199.10 repays principal. The split reverses over time, which the yearly schedule shows.
How much do extra payments save?
Every extra dollar reduces the balance immediately, so it saves all the interest that dollar would have accrued. Adding $200 a month to that $200,000 loan pays it off 108 months early and saves about $79,800 in interest.
Interest rate versus APR
The calculator uses the interest rate you enter. The APR on a US loan disclosure also folds in certain fees, so it is usually a little higher than the note rate; use the note rate here to reproduce your payment.
Worked examples.
A five-year car loan
$25,000 at 7.5% APR for 5 years.
$500.95 a month; $5,056.96 interest over the loan.
Load this exampleA 30-year loan at 6%
$200,000 at 6% for 30 years.
$1,199.10 a month; total interest $231,677.04, more than the amount borrowed.
Load this examplePaying $200 extra a month
The same $200,000 loan with $200 extra each month.
Paid off 108 months early, saving $79,800.86 in interest.
Load this exampleA 0% offer
$12,000 at 0% over 24 months.
$500.00 a month with no interest.
Load this exampleWhat this calculator
does not do.
- Fixed-rate loans with equal monthly payments only; no variable rates, balloon payments or interest-only periods.
- Fees, insurance and taxes are not included (see the mortgage calculator for those).
- Uses monthly compounding at the stated rate; some lenders accrue interest daily.
Common questions.
How much is the payment on a $10,000 loan?
At 8% for 3 years it is $313.36 a month; at 8% for 5 years it is $202.76. Enter your own rate and term above.
Does paying extra shorten my loan?
Yes, as long as the lender applies the extra amount to principal. Ask them to apply it to principal rather than to future payments.
What happens at 0% interest?
The payment is the amount divided by the number of months and no interest is charged.
- 12 CFR 1026.22, Determination of annual percentage rate (Regulation Z) — how the APR on a loan disclosure is defined
Cent-rounded month-by-month amortization checked against the closed-form remaining-balance formula and total interest for 120 randomized loans, plus published payment values and zero-rate cases.