How is the monthly payment calculated?

The calculator uses the standard amortization formula for fixed-rate loans: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments. This formula ensures each payment is equal over the life of the loan.

What is an amortization schedule?

An amortization schedule is a table that breaks down every loan payment into its principal and interest components. Early in the loan, most of each payment goes to interest. As you pay down the balance, more of each payment goes to principal. The schedule shows this shift over time.

How do extra payments affect my loan?

Extra payments go directly toward reducing the principal balance. Since interest is calculated on the remaining balance, a lower principal means less interest accrues on every subsequent payment. This can shave months or years off your loan and save significant money — often thousands of dollars on a long-term loan.

Does this work for auto loans and personal loans?

Yes. The calculator works for any fixed-rate installment loan, including auto loans, personal loans, student loans, and business loans. For mortgage-specific calculations with property tax and insurance, use our dedicated mortgage calculator.

What if I have a variable rate loan?

This calculator assumes a fixed interest rate for the entire term. Variable rate loans change periodically, so the results here represent an estimate based on the current rate. For variable rate loans, you can model different rate scenarios to understand the range of possible payments.

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Loan & Mortgage Calculator

A loan calculator computes your monthly payment, total interest, and full amortization schedule for any fixed-rate loan. Enter the loan amount, interest rate, and term to see the monthly payment, total cost, and how each payment splits between principal and interest.

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What is Loan & Mortgage Calculator?

A loan calculator is a browser-based tool that computes monthly payments, total interest, and amortization schedules for fixed-rate installment loans, helping borrowers understand the true cost of borrowing before committing.

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These tools work great alongside Loan & Mortgage Calculator:

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Start Using Loan & Mortgage Calculator Today

The monthly payment is only part of the story. This loan calculator reveals the full picture — the total interest you'll pay, how each payment chips away at the balance, and the dramatic impact of extra payments. Enter your loan details, explore the amortization schedule, and make borrowing decisions with confidence. The numbers don't hide anything here.

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