How is the monthly loan payment calculated?

The tool uses the amortizing-loan formula: payment = P x r x (1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly interest rate and n is the number of months. At 0% interest the payment is simply the principal divided by n.

What is an amortization schedule?

It is a table of every payment over the life of the loan, split into the interest portion, the principal portion and the remaining balance. It shows how each payment slowly reduces what you owe.

How does an extra monthly payment help?

An extra payment goes entirely toward the principal, which reduces the balance and therefore the interest charged on it. Paying extra every month can cut years off a long loan and save a significant amount of interest.

Can the loan calculator handle fractional years?

Yes. The term field accepts values from 0.25 years upward, so a six-month loan is entered as 0.5 years and is amortized over the correct number of payments.

Does the loan calculator include fees and insurance?

No. It covers principal and interest only. Processing fees, property tax and insurance are separate costs that need to be added to find the true total cost of the loan.

What is the difference between the interest rate and the APR?

The interest rate is the cost of borrowing the principal. The APR (annual percentage rate) also includes fees, so it is normally higher and gives a fairer comparison between loan offers.

Why is most of my early payment interest?

Interest is calculated on the outstanding balance, which is largest at the start of the loan. Each early payment clears the month's interest and only then reduces principal, so the balance falls slowly at first.

Is the loan calculator free and private?

Yes. It runs entirely in your browser with JavaScript — your loan amount, rate and term are never uploaded, stored or logged.

Does the tool work for variable-rate loans?

No. It assumes a fixed rate for the whole term. For adjustable-rate loans, run the numbers at different rates to see a range of possible payments.

What is the difference between the interest rate and the APR?

The interest rate is the cost of borrowing the principal. The APR adds most fees, points and other costs and expresses them as an annualized percentage, so it is usually slightly higher and gives a fairer comparison between loans.

How is the monthly payment calculated?

The monthly payment is calculated with the standard amortization formula using the principal, the monthly interest rate and the term in months. It is set so that the balance reaches zero exactly at the end of the term.

What happens if I pay more than the monthly amount?

Extra payments reduce the outstanding principal directly, which lowers the interest charged on all future payments. Keeping the same monthly payment while paying extra shortens the term and reduces total interest.

How do I calculate the total cost of the loan?

Multiply the monthly payment by the number of months to get the total repaid, then subtract the principal to find the total interest. The loan calculator does this automatically and displays both figures.

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Loan Calculator

Calculate monthly payments, total interest and see a full amortization schedule. Free loan calculator with extra payment.

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About Loan Calculator

Loan Calculator - Monthly Payment & Amortization

See your monthly payment, total interest, and a complete amortization schedule for any loan — car, home, personal, or student. Add an extra monthly payment to discover how much interest you save and how early you finish.

Why Use Our Loan Calculator?

Instant Monthly Payment — Know your budget in seconds
Full Amortization Table — Every payment broken down
Extra Payments — See time and interest saved
Clear Summary — Total interest and total paid at a glance
Free & Private — Runs entirely in your browser

How to Calculate a Loan

Enter the loan amount, interest rate, and term
Optionally add an extra monthly payment
View the monthly payment and full payment schedule

Understand any loan before you sign — no signup, no data stored.

Loan Calculator

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About Loan Calculator

Loan Calculator - Monthly Payment & Amortization

Why Use Our Loan Calculator?

How to Calculate a Loan

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