Loan Calculator

1. Enter the total loan amount in dollars.
2. Enter the annual interest rate as a percentage (e.g., 5.0 for 5%).
3. Set the loan term and toggle between years and months using the buttons. The value converts automatically when you switch.
4. View your monthly payment, total payment, and total interest instantly.
5. Click "Amortization Schedule" to see the full month-by-month payment breakdown with principal, interest, and remaining balance.

Understanding Loan Payments

Fixed-rate installment loans are repaid in equal monthly payments over a set period. Each payment includes both a principal portion (paying down the balance) and an interest portion (the cost of borrowing). This calculator works for personal loans, auto loans, student loans, and any other fixed-rate installment loan.

The amortization formula ensures that your payment stays the same each month, even though the split between principal and interest changes. In the early months, interest makes up a larger portion of your payment because the outstanding balance is higher. As you pay down the principal, less interest accrues, and more of each payment goes toward the principal.

When comparing loan offers, look beyond the monthly payment. Total interest paid over the life of the loan reveals the true cost of borrowing. A lower interest rate or shorter term can save you thousands of dollars, even if the monthly payment is slightly higher.