Loan Calculator
Calculate monthly payments, total interest, and view a complete amortization schedule for any loan. Supports extra payments to see how much you can save.
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $500.95 | $344.70 | $156.25 | $24,655.30 |
| 2 | $500.95 | $346.85 | $154.10 | $24,308.45 |
| 3 | $500.95 | $349.02 | $151.93 | $23,959.43 |
| 4 | $500.95 | $351.20 | $149.75 | $23,608.22 |
| 5 | $500.95 | $353.40 | $147.55 | $23,254.83 |
| 6 | $500.95 | $355.61 | $145.34 | $22,899.22 |
| 7 | $500.95 | $357.83 | $143.12 | $22,541.39 |
| 8 | $500.95 | $360.07 | $140.88 | $22,181.33 |
| 9 | $500.95 | $362.32 | $138.63 | $21,819.01 |
| 10 | $500.95 | $364.58 | $136.37 | $21,454.43 |
| 11 | $500.95 | $366.86 | $134.09 | $21,087.57 |
| 12 | $500.95 | $369.15 | $131.80 | $20,718.42 |
| 13 | $500.95 | $371.46 | $129.49 | $20,346.96 |
| 14 | $500.95 | $373.78 | $127.17 | $19,973.18 |
| 15 | $500.95 | $376.12 | $124.83 | $19,597.07 |
| 16 | $500.95 | $378.47 | $122.48 | $19,218.60 |
| 17 | $500.95 | $380.83 | $120.12 | $18,837.77 |
| 18 | $500.95 | $383.21 | $117.74 | $18,454.56 |
| 19 | $500.95 | $385.61 | $115.34 | $18,068.95 |
| 20 | $500.95 | $388.02 | $112.93 | $17,680.93 |
| 21 | $500.95 | $390.44 | $110.51 | $17,290.49 |
| 22 | $500.95 | $392.88 | $108.07 | $16,897.60 |
| 23 | $500.95 | $395.34 | $105.61 | $16,502.27 |
| 24 | $500.95 | $397.81 | $103.14 | $16,104.46 |
Showing first 24 of 60 payments
Understanding Loan Payments
Most loans use an amortization schedule, where each payment is split between interest and principal. Early payments are mostly interest, while later payments are mostly principal.
How Extra Payments Help
Making extra payments toward your principal reduces the balance faster, which means less interest accrues over the life of the loan. Even small extra payments can save thousands in interest and shorten your loan term significantly.
Frequently Asked Questions
How is a loan payment calculated?
Loan payments are calculated using the formula M = P × [r(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 payments. This ensures equal payments throughout the loan term.
How do extra payments affect my loan?
Extra payments go directly toward reducing your principal balance. This means less interest accrues, potentially saving you thousands and shortening your loan term. Even $50-100 extra per month can make a significant difference.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus other loan costs like origination fees and closing costs, giving you the true cost of the loan.
Should I choose a shorter or longer loan term?
Shorter terms (3-5 years) have higher monthly payments but lower total interest. Longer terms (7-10 years) lower monthly payments but increase total cost. Choose based on your monthly budget and how quickly you want to be debt-free.
Disclaimer
This calculator is for informational purposes only and should not be considered financial advice. Consult with a qualified financial professional before making any financial decisions.