How to Use the Loan Calculator
Enter the loan amount (the total amount you are borrowing), the annual interest rate as a percentage, and the loan term in years. For example, a $200,000 mortgage at 6.5% for 30 years would use those three values. Use the start date selectors to set when your first payment begins — this drives the actual calendar dates shown in the amortization schedule.
Click Calculate to see your monthly payment, the total amount you will pay over the life of the loan, and the total interest cost. The amortization table below shows a payment-by-payment breakdown: how much of each payment goes to principal (reducing your balance) and how much goes to interest. By default, the first 12 payments are shown — click 'Show all N payments' to see the complete schedule.
To compare different loan scenarios, simply change one input at a time and observe how the monthly payment and total interest change. Reducing the term from 30 to 15 years will roughly double the monthly payment but can save tens of thousands in total interest. Increasing the down payment reduces the loan amount and both the payment and total cost. Use the Copy button to grab your monthly payment for budget planning.
Why Use This Free Loan & Amortization Calculator?
- Uses the industry-standard amortization formula M = P[r(1+r)^n]/[(1+r)^n-1] for mathematically precise monthly payments
- Full amortization schedule shows exactly how each payment splits between principal and interest — crucial for understanding your loan
- Real calendar dates in the schedule make it easy to match payments to your budget
- Works for any loan type: mortgage, auto loan, personal loan, student loan
- No sign-up, no ads interrupting results, no data stored — 100% private
- Instantly recalculates when you change any input — ideal for comparing scenarios
- Shows total interest cost clearly so you can evaluate whether to refinance or pay extra
Frequently Asked Questions
What is loan amortization and why does it matter?
Loan amortization is the process of paying off a loan through regular scheduled payments, where each payment covers both interest charges and a portion of the principal balance. In the early payments of a loan, most of the payment goes toward interest with only a small amount reducing the principal. As the balance decreases over time, the interest portion shrinks and more goes to principal — this is called a 'front-loaded' or 'negative amortization' structure. Understanding amortization helps you see the true cost of a loan and the impact of extra payments or refinancing.
How much does an extra $100/month payment save on a mortgage?
On a typical 30-year, $300,000 mortgage at 6.5% interest, an extra $100/month payment reduces the total interest paid by approximately $30,000–$45,000 and shortens the loan by 4–5 years, depending on when you start making extra payments. The savings are largest if you start early, since more interest accrues in the early years. Extra payments apply directly to principal, accelerating the amortization schedule. Use this calculator to model your specific loan and see the exact impact.
What is the difference between interest rate and APR?
The interest rate (also called the note rate or nominal rate) is the basic cost of borrowing the principal, expressed as an annual percentage. APR (Annual Percentage Rate) is a broader measure that includes the interest rate plus other fees — such as origination fees, mortgage points, and certain closing costs — expressed as a single annual rate. APR is always equal to or higher than the interest rate and is designed to let consumers compare loans more accurately. This calculator uses the interest rate (not APR) for the standard amortization payment formula.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has a higher monthly payment but significantly lower total interest cost — often half or less compared to a 30-year loan. For example, a $300,000 loan at 6% costs about $1,554/month over 15 years (total interest: ~$179,700) versus $1,199/month over 30 years (total interest: ~$331,600). The 30-year mortgage provides more monthly cash flow flexibility and is better if the freed-up cash is invested at a return higher than your mortgage rate. The 15-year saves ~$152,000 in interest but requires a $355/month higher payment.
Can I use this calculator for a car loan or student loan?
Yes — the amortization formula is the same for all fixed-rate installment loans: mortgages, auto loans, personal loans, and student loans. Enter the loan amount you are borrowing, the annual interest rate on your loan (from your loan agreement or lender offer), and the repayment term in years (convert months to years if needed — a 60-month auto loan is 5 years). The monthly payment and amortization schedule will be mathematically accurate for any fixed-rate, fully amortizing loan.
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