by mrhaseeb

Free Loan Payment Calculator

Calculate your monthly loan payments, total interest costs, and see a detailed amortization schedule for any type of loan. Our calculator works for mortgages, auto loans, personal loans, and student loans.

Loan Details

Enter your loan information to calculate your payment schedule

The total amount you're borrowing
The annual interest rate for your loan
Total duration of your loan in years

Your Loan Summary

Monthly Payment
$477.00
Total Interest
$3,620.00
Total Payment
$28,620.00
Payoff Time
5 years

Payment Composition

Balance Over Time

Amortization Schedule

Payment Date Payment Principal Interest Total Interest Balance

Understanding Your Loan

How Loan Calculations Work

Loan payments are calculated using the formula for an amortizing loan. The formula considers the principal amount, interest rate, and loan term to determine your fixed monthly payment.

Loan Payment Formula:
M = P × [r(1 + r)^n] / [(1 + r)^n - 1]

Where:
M = Monthly payment
P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (loan term in years × 12)

This formula calculates the fixed payment amount required to fully repay a loan over its term, including both principal and interest.

Tips to Reduce Your Loan Costs

  • Make extra payments: Even small additional payments can significantly reduce your total interest costs and shorten your loan term.
  • Consider a shorter term: Loans with shorter terms typically have lower interest rates and save you money over the life of the loan.
  • Improve your credit score: A higher credit score can qualify you for better interest rates.
  • Shop around for lenders: Compare offers from multiple lenders to find the best rate and terms.
  • Make bi-weekly payments: Making half your monthly payment every two weeks results in one extra full payment each year.

Frequently Asked Questions

What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal loan amount. The APR (Annual Percentage Rate) includes the interest rate plus other charges or fees to reflect the total cost of the loan.
How do extra payments affect my loan?
Extra payments reduce your principal balance faster, which decreases the total interest you pay over the life of the loan and can shorten your loan term.
What is an amortization schedule?
An amortization schedule is a table showing each loan payment's allocation between principal and interest, and how your loan balance decreases over time.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but lower total interest costs. A 30-year mortgage has lower monthly payments but higher total interest. Choose based on your budget and financial goals.
How does my credit score affect my loan?
Your credit score significantly impacts the interest rate you'll receive. Higher credit scores typically qualify for lower interest rates, which can save you thousands over the life of a loan.