Loan Calculator

Monthly payment, payoff date, extra payments and full amortization schedule

Loan amount ($)

Interest rate (% per year)

Term (years)

+ months

Payment frequency

First payment date

Extra payments and fees (optional)

Extra per payment ($)

One-time extra payment ($)

Lump sum with payment no.

Origination fee (% of loan)

Monthly payment

—

Number of payments—

Total interest—

Total of all payments—

Interest saved with extra payments—

Paid off earlier by—

Origination fee / amount you receive—

Estimated APR—

Principal — Interest —

Amortization schedule

Yearly Every payment

Year	Payment	Principal	Interest	Balance

Frequently Asked Questions

How is a loan payment calculated? ▼

Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the interest rate per payment period (annual rate ÷ 12 for monthly payments) and n is the number of payments. A $25,000 loan at 6.5% for 5 years has 60 payments of about $489.15.

How much do extra payments save? ▼

Every extra dollar goes straight to principal, so interest is charged on a smaller balance for the rest of the loan. On a $25,000 loan at 6.5% for 5 years, paying $100 extra each month saves about $865 in interest and pays the loan off 11 months early. Enter your own extra amount to see the exact savings and new payoff date.

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

The interest rate is what the lender charges on the balance. APR also includes upfront fees such as an origination fee, spread over the life of the loan. If you pay a 5% origination fee on a $25,000 loan, you receive $23,750 but repay the full $25,000 plus interest, so the APR is higher than the stated rate. Enter the fee to see the estimated APR.

Do biweekly payments pay a loan off faster? ▼

Paying half the monthly payment every two weeks results in 26 half-payments, or 13 full payments a year instead of 12, which shortens the loan. This calculator's biweekly option instead spreads the same loan over 26 equal payments a year at the biweekly rate, which shows the payment size for loans that are scheduled biweekly from the start.

Does this work for mortgages, auto loans and personal loans? ▼

Yes. Any fixed-rate installment loan with equal payments uses the same amortization math: personal loans, auto loans, mortgages (principal and interest only) and private student loans. Taxes, insurance and PMI on a mortgage are not included.

Why does more of my payment go to interest at the start? ▼

Interest is charged on the current balance, which is highest at the beginning. As the balance falls, less of each fixed payment is needed for interest and more goes to principal. That is why extra payments made early in the loan save the most interest.

How the loan payment formula works

For a fixed-rate loan, every payment is the same: Payment = P × r(1+r)ⁿ ÷ [(1+r)ⁿ − 1], where P is the principal, r is the interest rate per period (the annual rate divided by 12 for monthly payments) and n is the number of payments. Each payment first covers the interest on the current balance, and the rest reduces the principal. That is amortization: the interest part shrinks every month and the principal part grows.

Example: $25,000 at 6.5% for 5 years gives 60 monthly payments of $489.15. You repay $29,349 in total, so the loan costs $4,349 in interest. In the first payment, $135.42 is interest and $353.74 is principal; by the last payment almost all of it is principal.

How extra payments change the math

An extra payment goes entirely to principal, so every later payment is charged interest on a smaller balance. With the same $25,000 loan, $100 extra a month cuts the term from 60 to 49 payments and saves about $865 in interest. A one-time lump sum early in the loan, such as a tax refund, has a similar effect. Check that your lender applies extra money to principal and does not charge a prepayment penalty. To compare paying extra with other options, see the loan overpayment calculator.

Interest rate vs. APR

Many personal loans charge an origination fee of 1% to 10%, usually deducted from the money you receive. You still repay the full loan amount, so the true cost is higher than the interest rate suggests. The APR spreads that fee over the term. Enter the fee in the optional section and the calculator estimates the APR from the actual cash flows.

Which loans this calculator covers

Personal loans, auto loans, the principal-and-interest part of a mortgage and private student loans all follow the same amortization. For specific cases you can also use the debt consolidation loan calculator, the home equity loan calculator, the car affordability calculator or the student loan payoff calculator. For a step-by-step explanation of the formula with worked examples, read how to calculate a loan payment.