Finance Tools
Free Loan Calculator — Monthly Payment & Amortization Schedule
Calculate your exact monthly payment, total interest, and full amortization schedule. Simulate extra payments and compare two loan options side by side.
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This calculator provides estimates for informational purposes only. Actual loan terms, rates and fees vary by lender and borrower profile. Consult a qualified financial advisor before making borrowing decisions.
Loan Details
$
%
years
Extra Monthly Payment
$
$500.95
Monthly Payment
$5,056.92
Total Interest
$30,056.92
Total Cost
June 2031
Payoff Date
Cost Breakdown
Principal $25,000.00 (83%)Interest $5,056.92 (17%)
How to Use the Loan Calculator
1
Enter loan details
Input the loan amount, annual interest rate and term in years. Results update instantly.
2
Simulate extra payments
Enter any extra monthly amount to see exactly how much interest you save and how many months you cut from the loan.
3
Review amortization schedule
Expand the full schedule to see every monthly payment broken into principal and interest. Download as CSV for spreadsheet analysis.
4
Compare two loans
Toggle comparison mode to enter a second loan and see a side-by-side breakdown of monthly payment, total interest and payoff date.
❓ Frequently Asked Questions
How is my monthly loan payment calculated?+
Monthly loan payment is calculated using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of payments. This ensures each payment covers the interest due that month plus a portion of the principal, with the split shifting toward more principal over time.
What is an amortization schedule?+
An amortization schedule is a complete table showing every payment over the life of your loan, broken down into principal and interest portions. Early payments are mostly interest — for example, on a 30-year mortgage, over 70% of your first payment goes to interest. Over time the balance shifts, and your final payments are nearly all principal. Our calculator generates the full schedule showing every monthly payment.
How much can extra payments save me?+
Extra payments can dramatically reduce the total interest you pay and shorten your loan term. On a $30,000 car loan at 7% over 60 months, paying an extra $100/month saves about $1,200 in interest and pays off the loan 11 months early. The earlier in the loan term you make extra payments, the more you save — because you reduce the principal that future interest is calculated on.
What is the difference between APR and interest rate?+
The interest rate is the base cost of borrowing expressed as a percentage. APR (Annual Percentage Rate) includes the interest rate plus additional fees (origination fees, points, mortgage insurance) expressed as a yearly rate. APR is always equal to or higher than the interest rate. When comparing loans, always compare APRs — two loans with the same interest rate can have very different APRs if one has higher fees.
Should I choose a shorter or longer loan term?+
A shorter term means higher monthly payments but dramatically less total interest paid. A longer term means lower monthly payments but significantly more interest over the life of the loan. For example, a $20,000 loan at 6%: over 36 months you pay about $1,850 total interest; over 72 months you pay about $3,760. Use our loan comparison feature to see the trade-off side by side.