Calculate Your Loan Payments
Find your monthly payment, total interest, and full amortization schedule for any loan — mortgage, car, or personal.
⚙Loan Details
Total amount you want to borrow
Annual percentage rate (APR)
How long to repay the loan
Common Loans
Monthly Payment
$489.15
Total Interest
$4,349.22
Total Payment
$29,349.22
Interest Ratio
14.8%
Principal vs Interest by Year
First 6 Months
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $489.15 | $353.74 | $135.42 | $24,646.26 |
| 2 | $489.15 | $355.65 | $133.50 | $24,290.61 |
| 3 | $489.15 | $357.58 | $131.57 | $23,933.03 |
| 4 | $489.15 | $359.52 | $129.64 | $23,573.51 |
| 5 | $489.15 | $361.46 | $127.69 | $23,212.05 |
| 6 | $489.15 | $363.42 | $125.73 | $22,848.63 |
How Loan Payments Are Calculated
Loan payments are calculated using the standard amortization formula. Each payment covers both interest and a portion of the principal. In the early months, most of your payment goes toward interest. Over time, more goes toward reducing the principal.
Loan Term Comparison
Choosing the right loan term has a major impact on your monthly payment and total cost. Here's a comparison for a $25,000 loan at 6.5%:
| Term | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|
| 3 years | $766 | $1,576 | $26,576 |
| 5 years | $489 | $4,374 | $29,374 |
| 7 years | $374 | $6,378 | $31,378 |
Frequently Asked Questions
How is a monthly loan payment calculated?
Monthly payments use the amortization 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.
What is an amortization schedule?
An amortization schedule shows each monthly payment broken down into principal and interest portions. Early payments are mostly interest; later payments are mostly principal.
How can I reduce the total interest on my loan?
Make extra principal payments, choose a shorter loan term, improve your credit score to qualify for lower rates, or refinance when rates drop.
What is a good interest rate for a personal loan?
Personal loan rates typically range from 6% to 36% depending on credit score. Rates below 10% are generally considered good. Mortgage rates are typically lower, ranging from 3% to 8%.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees, giving a more complete picture of the loan cost.
Should I choose a shorter or longer loan term?
Shorter terms mean higher monthly payments but significantly less total interest paid. Longer terms lower monthly payments but cost more overall. Use our calculator to compare both scenarios.