Loan Calculator
Calculate your monthly loan payments, total interest, and view a complete amortization schedule. Compare fixed amortization vs. simple interest.
Loan Details
Fixed monthly payment with decreasing interest
Monthly Payment
$978.31
Total Interest
$8,698.44
14.8% of total
Total Paid
$58,698.44
Amortization Schedule (First 12 Months)
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $978.31 | $707.47 | $270.83 | $49,292.53 |
| 2 | $978.31 | $711.31 | $267.00 | $48,581.22 |
| 3 | $978.31 | $715.16 | $263.15 | $47,866.06 |
| 4 | $978.31 | $719.03 | $259.27 | $47,147.03 |
| 5 | $978.31 | $722.93 | $255.38 | $46,424.10 |
| 6 | $978.31 | $726.84 | $251.46 | $45,697.26 |
| 7 | $978.31 | $730.78 | $247.53 | $44,966.48 |
| 8 | $978.31 | $734.74 | $243.57 | $44,231.74 |
| 9 | $978.31 | $738.72 | $239.59 | $43,493.02 |
| 10 | $978.31 | $742.72 | $235.59 | $42,750.30 |
| 11 | $978.31 | $746.74 | $231.56 | $42,003.55 |
| 12 | $978.31 | $750.79 | $227.52 | $41,252.77 |
Showing first 12 months of 60 total months
How to Use Loan Calculator
- 1Enter loan amount - The total amount you're borrowing
- 2Set interest rate - Your annual percentage rate (APR)
- 3Choose loan term - Duration in months
- 4Select amortization type - Fixed or Simple Interest
- 5View results - Monthly payment, total interest, and schedule
Understanding Loan Calculations
Our free loan calculator helps you understand the true cost of borrowing. Whether you're considering a personal loan, auto loan, or mortgage, calculating your monthly payment and total interest is essential for financial planning.
The calculator supports two common amortization methods: fixed amortization (most common for mortgages and car loans) and simple interest (used for some personal loans). Each method results in different payment structures and total interest paid.
Understanding your loan payments helps you budget effectively, compare loan offers, and make informed financial decisions about borrowing.
Amortization Types
Fixed Amortization
The most common method. Your monthly payment stays the same throughout the loan term. Early payments have more interest, later payments have more principal.
Used for: Mortgages, car loans, personal loans
Simple Interest
Interest is calculated only on the remaining principal. Your interest payment decreases each month as the principal decreases, but your total payment stays relatively constant.
Used for: Some personal loans, short-term loans
Frequently Asked Questions
What's the difference between APR and interest rate?
APR (Annual Percentage Rate) includes the interest rate plus other costs/fees associated with the loan. The interest rate is just the cost of borrowing. APR gives a more complete picture of the loan's true cost.
Why does my early payment go mostly to interest?
In fixed amortization, interest is calculated on the remaining balance. Early in the loan, the balance is highest, so more of your payment goes to interest. As you pay down the principal, more of each payment goes toward reducing the balance.
Can I pay off my loan early?
Most loans allow early payoff without penalty. Paying extra toward principal can significantly reduce total interest paid and shorten your loan term. Check your loan agreement for any prepayment penalties.
How does the amortization schedule help?
The schedule shows exactly how much of each payment goes to principal vs. interest. This helps you understand your loan structure, plan extra payments, and see how changes affect your total interest.
Is this calculator accurate for my actual loan?
This calculator provides estimates based on standard formulas. Your actual payments may vary due to fees, insurance, taxes, or variable interest rates. Always verify with your lender.
Loan Summary
Loan Tips
- •Lower interest rates save significant money
- •Shorter terms mean less total interest
- •Extra payments reduce interest faster
- •Compare offers from multiple lenders
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