Loan Payment Calculator
A car loan, a personal loan, student debt: they all run on the same math. You pay a fixed amount each month, interest comes out first, and the rest chips away at the balance.
Enter the amount, rate and term. You get the monthly payment, the total you'll repay, and how much of that is interest.
Loan details
Optional. Applied directly to principal.
Your loan
- Monthly payment
- $489.15
- Payoff time
- 5 yr 0 mo
- Total interest
- $4,349.22
- Total paid
- $29,349.22
All ballast aboard. Add an extra monthly payment to finish sooner
Where your payments go over the payoff
Over 5 years you pay $25,000.00 toward the loan itself and $4,349.22 in interest. Principal stays ahead of interest from the start. Full year-by-year figures are in the amortization schedule below.
Show amortization schedule (by year)
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $4,373.62 | $1,496.23 | $20,626.38 |
| 2 | $4,666.53 | $1,203.32 | $15,959.86 |
| 3 | $4,979.05 | $890.79 | $10,980.81 |
| 4 | $5,312.51 | $557.34 | $5,668.30 |
| 5 | $5,668.30 | $201.55 | $0.00 |
Before you rely on this
Results are generic estimates using standard time-value-of-money formulas, the same math everywhere. Real-world figures depend on your country's tax rules, rounding, fees, and lender or product terms, which vary by jurisdiction. Treat this as a guide and confirm important numbers with a local professional.
How the loan calculation works
The monthly payment comes from the amortization formula M = P · r / (1 − (1 + r)⁻ⁿ). Each month, interest is charged on the remaining balance, and the rest of your payment reduces the principal.
A 0% promotional loan just splits the principal evenly. The moment there's a rate, interest is front-loaded. That's why early extra payments save the most.
Tips
- A shorter term means a higher monthly payment but far less interest overall.
- Check the APR, not just the headline rate. APR includes fees, so it's the truer cost.
- Even one extra payment a year shortens the loan noticeably.
Frequently asked questions
How is a loan's monthly payment calculated?
It's the fixed amount that clears the principal plus interest by the end of the term. Each month, interest is charged on the outstanding balance, and the remainder of the payment reduces the principal.
What's the difference between interest rate and APR?
The interest rate is just the price of the money. APR folds in fees and certain costs, so it reflects the loan's true yearly cost. Use it to compare offers.
Will paying extra reduce my interest?
Yes. Extra payments cut the principal, so less interest accrues from that point on. The payoff date moves up too.