Loan Calculator
Calculate your monthly loan payments, total interest paid, and create an amortization schedule. This calculator works for any type of loan including personal loans, auto loans, and business loans.
Payment Summary
Loan Details
Extra Payments Impact
Loan Amortization Schedule
Enter loan details and click "Calculate" to view the amortization schedule
Understanding Loan Calculations
A loan calculator helps you determine your monthly payments, total interest paid, and the complete repayment schedule. Understanding these calculations is crucial for making informed borrowing decisions.
How Loan Payments Are Calculated
Monthly Payment Formula
Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
Where: P = Principal, r = Monthly Interest Rate, n = Number of Payments
Principal
The amount you're borrowing
Doesn't include interest
Interest Rate
Annual rate divided by 12
Compounded monthly
Loan Term
Total number of months
Affects payment amount
Amortization Explained
Loan amortization shows how each payment is split between principal and interest. Early payments are mostly interest, while later payments are mostly principal.
Impact of Extra Payments
Benefits of Extra Payments
Interest Savings
Reduce total interest paid
Lower effective cost of borrowing
Faster Payoff
Shorten loan term
Build equity faster
Types of Loans
| Loan Type | Typical Rate | Typical Term | Use Case |
|---|---|---|---|
| Personal Loan | 6-36% | 1-7 years | Debt consolidation, home improvement |
| Auto Loan | 3-10% | 3-7 years | Vehicle purchase |
| Business Loan | 5-25% | 1-10 years | Business expansion, equipment |
| Student Loan | 3-8% | 10-30 years | Education expenses |
Key Takeaways for Loan Calculations
- Monthly payments are calculated using the loan payment formula
- Interest rates significantly impact total cost
- Longer terms mean lower payments but more total interest
- Extra payments save money and time
- Amortization shows how payments are applied
- Compare different loan options before borrowing
- Consider your ability to repay before taking a loan