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LOANS CALCULATOR

Loan Calculator

Estimate the monthly payment and total cost of a fixed-rate installment loan. Add an optional extra payment to see how much sooner the balance could reach zero.

Calculator

%
years
Advanced options
YOUR RESULTS
Scheduled monthly payment299.71
Payment with extra
299.71
Total interest
789.52
Total paid
10,789.52
Payoff time
36 months
Interest saved
0.00

The scheduled payment amortizes the loan over 3 years. Extra payments shorten the modeled payoff to 36 months.

Remaining loan balance

Amounts use the same currency as your inputs.

Balance
03.4K6.8K123Year

Year 3

Principal paid in year
3,500.97
Interest paid in year
95.54
Remaining balance
0.00

Each point shows the remaining balance after payments for that year. The final year may contain fewer than 12 payments.

Annual amortization summary
Annual amortization summary
YearPrincipal paid in yearInterest paid in yearRemaining balance
13,168.46428.046,831.54
23,330.57265.943,500.97
33,500.9795.540.00

Understanding your result

The scheduled payment repays principal and interest over the stated term. The payment-with-extra figure is the planned monthly outflow until the smaller final payment.

For a housing budget that includes property tax, insurance, and association fees, the Mortgage Calculator adds those estimates to principal and interest.

The formula

M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]

P is principal, r is the monthly interest rate, and n is the number of monthly payments. When the rate is zero, payment is principal divided by n. The schedule applies interest to the remaining balance each month before subtracting principal.

A 10,000 loan for three years

At 5% annual interest over 36 monthly payments, the scheduled payment is about 299.71. The exact final payment may be smaller because displayed payments are rounded to cents.

How to use this calculator

  1. Enter the amount borrowed, annual rate, and whole-year term.
  2. Optionally add an extra monthly principal payment.
  3. Calculate to compare payment, interest, payoff time, and the annual schedule.

How amortization changes each month

A level payment stays constant, while its split changes. Early payments contain more interest because the outstanding balance is larger. Later payments direct more money to principal.

Extra principal lowers the balance sooner. The calculator keeps the required scheduled payment unchanged and applies the extra amount every month until payoff.

Compare loan offers on total cost

A lower payment can result from a lower rate, a longer term, or both. A longer term often increases total interest even when it makes each payment easier to manage.

Fees are not included here. Compare the annual percentage rate and disclosures from the lender, not just an advertised interest rate.

Assumptions & limitations

What this calculation assumes

  • Fixed nominal annual interest divided into twelve monthly periods.
  • Payments are made on time at the end of each month.
  • Extra payments go directly to principal without a prepayment charge.

What to keep in mind

  • Origination fees, taxes, insurance, late charges, and changing rates are excluded.
  • Actual lender rounding and payment dates can produce small differences.
  • The result is an estimate, not a lending offer.

Common questions

Does an extra payment reduce the required payment?

This model keeps the scheduled payment unchanged and shortens the payoff time. A lender may handle recasting differently.

Why is the final payment smaller?

The regular amount can exceed the last balance plus interest, so the schedule uses only what is needed to reach zero.

Can I use this for weekly payments?

This calculator models monthly payments.

Sources & further reading