Loan Calculator
Calculate your monthly loan payment, total interest, and total cost. Compare up to 3 loan scenarios side by side. Supports fixed (annuity) and decreasing payment methods.
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Loan Details
USD
%
Fixed Payments (Annuity)
USD
Monthly Payment
$202.76
Total Interest
$2,166
Total Cost
$12,166
Interest as % of Loan
21.66%
Amortization Schedule
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
1 | $2,433 | $1,694 | $739 | $8,306 |
2 | $2,433 | $1,835 | $598 | $6,471 |
3 | $2,433 | $1,987 | $446 | $4,483 |
4 | $2,433 | $2,152 | $281 | $2,331 |
5 | $2,433 | $2,331 | $102 | $0 |
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Loan calculator. Monthly payment, total interest, and amortization schedule.
A loan calculator estimates your monthly payment and total interest from the loan amount, interest rate, and term. It builds a full amortization schedule and shows how extra payments cut your interest and shorten the payoff.
What Is a Loan Payment Calculator?
Borrow 250,000 dollars for a home at 7% over 30 years and the monthly payment is 1,663 dollars — but the interest alone adds up to 348,769 dollars, so the house actually costs you 598,769 dollars. The interest is more than the amount you borrowed: 139.51% of the principal. That gap between what you borrow and what you repay is exactly what a loan calculator makes visible before you sign.
A loan calculator works out the monthly payment, the total interest, and the full repayment schedule from three numbers: the loan amount (also called the principal), the annual interest rate, and the term. It works for any amortized loan — a mortgage, an auto loan, a personal loan, a student loan, or a business loan — because they all share the same math: a fixed monthly payment that covers the interest due that month and chips away at the balance until it reaches zero.
The term is the lever most borrowers underestimate. Stretch a loan longer and the monthly payment drops, which feels like a win, but you pay interest for more months and the total cost climbs. Borrow 20,000 dollars as a personal loan at 9% over 3 years and you pay 635.99 dollars a month with 2,895.82 dollars in interest — about 14% on top of what you borrowed. Push a 250,000-dollar mortgage out to 30 years, though, and the interest can dwarf the loan itself. The calculator lets you test each combination of amount, rate, and term so you can weigh the total cost, not just the payment, before you commit.
One honest caveat: this is an estimate for planning, not financial advice. Real quotes carry fees, insurance, and taxes the base payment does not include, and the rate you are offered depends on your credit and the lender.
How to Use the Loan Calculator
This loan calculator does the amortization math for you — enter four numbers and read the results. Here is what each field means:
1. Loan amount (principal). The sum you are borrowing, such as 30,000 dollars for a car or 250,000 dollars for a home.
2. Interest rate (APR). Your annual rate as a percentage, for example 6% or 7%. Use the APR when you have it, since it folds in most lender fees and makes offers comparable.
3. Term. How long you have to repay, in years or months. A shorter term means a higher monthly payment but far less total interest.
4. Extra payment (optional). A fixed amount you add to every monthly payment. Leave it at 0 if you plan to pay only the scheduled amount.
The calculator returns your monthly payment, the total interest over the life of the loan, the total cost (principal plus interest), and a month-by-month amortization schedule showing how each payment splits between interest and principal. Finance 30,000 dollars for a car at 6% over 5 years, for instance, and it shows a payment of 579.98 dollars a month, 4,799.09 dollars in total interest, and a total cost of 34,799.09 dollars — interest adds just 16% on top of the loan.
The extra-payment field is where the tool earns its keep. Take that same 250,000-dollar mortgage at 7% over 30 years and add 200 dollars to every monthly payment: the total interest falls from 348,769 dollars to 238,971 dollars. That single habit saves 109,798 dollars and clears the loan 97 months — just over eight years — early. When you read the results, do not stop at the monthly payment; look at the total interest, because that is the number that decides how much the loan really costs.
Loan Payment Formula
- = The fixed monthly payment
- = The loan principal (amount borrowed)
- = The annual interest rate as a decimal (7% = 0.07)
- = The total number of monthly payments (years multiplied by 12)
This is the French amortization formula, the standard for fixed-payment loans in the US. Every monthly payment is identical, and each one covers the interest owed that month while the rest reduces the balance — so the loan reaches exactly zero on the final payment. Early payments are mostly interest; later payments are mostly principal.
To use it by hand, convert the annual rate to a monthly rate by dividing by 12, raise one plus that monthly rate to the number of payments, and apply the formula above. Total interest is simply the monthly payment times the number of payments, minus the amount borrowed. For a 250,000-dollar mortgage at 7% over 30 years (360 payments), that works out to a payment of 1,663.26 dollars a month and about 348,774 dollars in total interest by this quick method; the tool reports 348,769.07, because it sums each month's rounded interest and trims the final payment.
When the interest rate is zero, the formula collapses to the principal divided by the number of months, because there is no interest to spread across the schedule:
Loan Payment Scenarios at a Glance
| Loan | Rate | Term | Monthly payment | Total interest | Total cost | Interest vs principal |
|---|---|---|---|---|---|---|
| $30,000 auto | 6% | 5 yr | $579.98 | $4,799.09 | $34,799.09 | 16% |
| $250,000 mortgage | 7% | 30 yr | $1,663.26 | $348,769.07 | $598,769.07 | 139.51% |
| $20,000 personal | 9% | 3 yr | $635.99 | $2,895.82 | $22,895.82 | 14.48% |
| $250,000 mortgage + $200/mo | 7% | 30 yr | $1,863.26 | $238,971.39 | $488,971.39 | 95.59% |
Real Loan Examples: Auto, Personal, and Mortgage
Auto loan: $25,000 at 7% over 5 years
Finance a $25,000 car at 7% for 5 years and the calculator returns a $495.03 monthly payment across all 60 months. Over the life of the loan you pay $4,701.82 in interest, so the car actually costs $29,701.82. That interest equals 18.81% of the amount you borrowed, which is modest because a 5-year term keeps the balance shrinking quickly. This is the everyday case most borrowers meet first: a short term on a mid-size balance, where the payment fits a normal budget and the total interest stays well under a quarter of the principal.
Personal loan: $15,000 at 12% over 3 years
A $15,000 personal loan at 12% over 3 years costs $498.21 a month, almost the same monthly figure as the $25,000 car above even though you are borrowing $10,000 less. The reason is the higher rate and shorter term: 36 payments at 12% concentrate the cost into a small window. Total interest comes to $2,935.75, or 19.57% of the principal, and the loan costs $17,935.75 in all. Personal loans usually carry the steepest rates of the common loan types because they are unsecured, with no car or house the lender can repossess, so it is worth running the numbers before you accept one.
Mortgage: $300,000 at 6.5% over 30 years
Borrow $300,000 for a home at 6.5% over 30 years and the monthly payment is $1,896.20, which looks comfortable next to the sticker price. But stretch that payment across 360 months and the interest reaches $382,636.71, more than the amount you borrowed. The total cost climbs to $682,636.71 and the interest equals 127.55% of the principal. This is the number the monthly payment hides: a long mortgage charges interest on a large balance for decades, so the cost of borrowing quietly overtakes the loan itself. It is exactly why you should look past the monthly figure at the total interest before you sign.
The same mortgage with $200 extra every month
Now take that same $300,000 mortgage at 6.5% and add just $200 to every monthly payment. The base payment stays $1,896.20, but the extra goes straight to the principal, so the balance falls faster each month. Total interest drops from $382,636.71 to $279,186.52, a saving of $103,450.19, and the loan is paid off in 277 months instead of 360, clearing it 83 months (nearly 7 years) early. The extra $200 does its heaviest work in the early years, when the balance is largest and most of each scheduled payment still goes to interest. This scenario is the strongest reason to run the calculator: a small, steady overpayment you barely notice can erase more than a quarter of the total interest.
5 Common Loan Mistakes
- Judging a loan by the monthly payment alone. A lower payment almost always means a longer term and more interest. The monthly figure tells you what fits your budget this month; the total interest tells you what the loan actually costs. Read both before you sign.
- Assuming a longer term is the cheaper option. Stretching the term lowers each payment but adds months of interest. A 250,000-dollar mortgage at 7% costs 1,663 dollars a month over 30 years, and by the end the interest — 348,769 dollars — is larger than the amount you borrowed. The comfortable payment hides an expensive loan.
- Not realizing the interest can exceed the principal. On long mortgages this is normal, not an error in the math: at 7% over 30 years, the interest on a 250,000-dollar loan reaches 139.51% of what you borrowed. Seeing the total cost — nearly 598,769 dollars for a 250,000-dollar home — is the reason to check the schedule before committing.
- Forgetting the costs a payment calculator does not include. For a mortgage, property taxes, homeowners insurance, and sometimes PMI or HOA dues sit on top of the principal-and-interest figure shown here. Budget for the full housing cost, not just the loan payment, or the real monthly outlay will catch you off guard.
- Believing a small extra payment is not worth it. Adding just 200 dollars a month to a 250,000-dollar mortgage at 7% cuts the total interest from 348,769 dollars to 238,971 dollars — a saving of 109,798 dollars — and clears the loan about eight years early. Small, consistent overpayments in the early years, when the balance is largest, have the biggest effect.
Frequently Asked Questions About Loan Payments
How much is the monthly payment on a $250,000 mortgage?
At 7% over 30 years, the monthly payment on a 250,000-dollar mortgage is 1,663 dollars, and you pay 348,769 dollars in interest over the full term. A shorter term raises the payment but sharply lowers the total interest.
How much does a $30,000 car loan cost per month?
A 30,000-dollar auto loan at 6% over 5 years costs 579.98 dollars a month. Over the 60 payments you pay 4,799.09 dollars in interest, so the car really costs 34,799.09 dollars — about 16% more than the amount financed.
What is the difference between the interest rate and the APR?
The interest rate is the base cost of borrowing. The APR (annual percentage rate) folds in most lender fees, like origination charges, so it reflects the true yearly cost. When you compare offers, compare APRs, not headline rates — a low rate with high fees can be the pricier loan.
What is amortization?
Amortization is paying off a loan through equal scheduled payments that each cover the interest due plus part of the balance. Early payments are mostly interest; later ones are mostly principal. The balance reaches exactly zero on the final payment.
Does making extra payments on a loan really save money?
Yes, and often dramatically. Adding 200 dollars a month to a 250,000-dollar mortgage at 7% cuts the total interest from 348,769 dollars to 238,971 dollars — a 109,798-dollar saving — and pays the loan off about eight years early. Extra payments help most in the early years, when the balance is largest, and go furthest applied to the principal. Just check first that your lender charges no prepayment penalty.
How much can extra payments save on a $300,000 mortgage?
Adding $200 to every payment on a $300,000 mortgage at 6.5% over 30 years cuts total interest from $382,636.71 to $279,186.52 — a saving of $103,450.19 — and pays the loan off 83 months early, in 277 months instead of 360.
Why is my total interest higher than the loan amount?
On long loans, interest can exceed the principal because it is charged every month on the outstanding balance for many years. A 250,000-dollar mortgage at 7% over 30 years generates 348,769 dollars in interest — 139.51% of what you borrowed. Shortening the term or overpaying is the only way to bring that figure down.
Which type of loan costs the most in interest?
It depends far more on the rate and term than on the label. A $15,000 personal loan at 12% over 3 years adds 19.57% in interest, and a $25,000 auto loan at 7% over 5 years adds 18.81% — close, because both are short. A $300,000 mortgage at 6.5% over 30 years adds 127.55%, because interest compounds on a large balance for 360 months. Term length, not the loan type, drives the total cost.
Is this loan calculator free and accurate?
Yes, the calculator is free to use and applies the standard French amortization formula lenders use, so the monthly payment and total interest are precise for the numbers you enter. It is an estimate for planning, though: your real quote depends on your credit, and it excludes fees, taxes, and insurance a lender may add.
Can I use this calculator for a mortgage, auto loan, and personal loan?
Yes. Every amortized loan uses the same math, so you can model a mortgage, auto loan, personal loan, student loan, or business loan — just enter that loan's amount, rate, and term. A $25,000 auto loan at 7% over 5 years shows a $495.03 monthly payment, while a $15,000 personal loan at 12% over 3 years shows $498.21 a month.
How do I compare two loan offers fairly?
Use the same loan amount for both and compare the total cost — principal plus every fee plus total interest — not just the monthly payment or the rate. A lower monthly payment often hides a longer term and more interest. Enter each offer's amount, rate, and term to see the total cost side by side.
What loan amount, rate, and term should I enter?
Enter the amount you want to borrow (the principal), the annual interest rate or APR your lender quoted, and the repayment term in years. Add an optional extra monthly payment to see how much interest you would save. Borrow 20,000 dollars at 9% over 3 years, for example, and the payment is 635.99 dollars a month with 2,895.82 dollars in interest.