Loan Calculator
Monthly payment and full amortization schedule for any fixed-rate loan
Frequently Asked Questions
Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. This is the standard fixed-rate amortization formula used for mortgages, auto loans, and personal loans.
An amortization schedule breaks down every payment over the life of the loan, showing how much goes toward interest versus principal, and the remaining balance after each payment. Early payments are mostly interest; later payments are mostly principal, even though the total payment stays the same.
Interest is charged on the current balance, which is highest at the beginning of the loan. As the balance shrinks with each payment, less of the fixed payment is needed to cover interest, so more of it goes toward principal — this is normal amortization behavior, not an error.
Yes, this calculator uses the standard fixed-rate amortization formula that applies to any installment loan with equal monthly payments — mortgages, auto loans, personal loans, and student loans all use the same math.
Making extra payments toward principal reduces the balance interest accrues on for every remaining period, which shortens the loan and cuts total interest. Even small recurring extra payments compound into meaningful savings over a long-term loan.
How the loan payment formula works
Monthly payment = P × [r(1+r)n] ÷ [(1+r)n − 1], where P is the principal, r is the monthly rate (annual rate ÷ 12), and n is the number of monthly payments. This spreads the loan into equal payments where the interest portion shrinks and the principal portion grows every month, a process called amortization.