💵 Loan Calculator
Enter the loan amount, interest rate, and term to see your fixed monthly payment, the total interest, and the total cost — and add an extra monthly payment to watch the payoff date move up.
💰 Your Loan, Amortized
What is a Loan Calculator?
A loan calculator turns three numbers — how much you borrow, the interest rate, and how long you have to repay — into the answers that actually matter: the payment you'll owe each month, the total interest the loan will cost, and what you'll have paid by the time it's gone. It works for mortgages, auto loans, personal loans, and business financing alike.
Use it to compare offers, test how a higher down payment or shorter term changes the math, or see how much interest an extra monthly payment saves. The results are general informational estimates, not professional tax, accounting, or financial advice — consult a CPA or financial advisor before borrowing.
❓ Frequently Asked Questions
How does the loan calculator work?
It uses the standard amortization formula. From the principal, annual interest rate, and term in months, it derives the fixed monthly payment that pays the loan off exactly on schedule, then multiplies that by the term to find the total paid and subtracts the principal to find the total interest. If you add an extra monthly payment, it simulates the loan month by month — applying interest, then principal, then the extra — to find the earlier payoff date and the interest you save.
How is a monthly loan payment calculated?
The amortization payment is P × r ÷ (1 − (1 + r)^−n), where P is the principal, r is the monthly interest rate (the annual rate divided by 12), and n is the number of months. Early payments are mostly interest; as the balance falls, more of each payment goes to principal. At a 0% rate the payment is simply the principal divided by the number of months.
Does paying extra each month really help?
Yes — every extra dollar goes straight to principal, which shrinks the balance that interest is charged on for the rest of the loan. Even a modest extra payment can shave months or years off the term and save a meaningful amount of interest. Confirm with your lender that extra payments are applied to principal and that there's no prepayment penalty.
Are these figures exact?
They're general informational estimates, not professional tax, accounting, or financial advice. Real loans can include fees, insurance, variable rates, and different compounding conventions, so confirm the actual numbers with your lender and consult a CPA or financial advisor before borrowing.