Loan Payment Calculator
Calculate your monthly payment and view a complete amortization schedule for any fixed-rate loan.
Frequently Asked Questions
How is my monthly loan payment calculated?
Monthly payments are calculated using the standard amortization formula: M = P × [r(1 + r)n] / [(1 + r)n − 1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments. This formula ensures each payment covers both interest and principal so the loan is fully repaid by the end of the term.
What is an amortization schedule?
An amortization schedule is a month-by-month breakdown of each loan payment. It shows how much of each payment goes toward interest versus principal, and your remaining balance after each payment. Early in the loan, a larger share of each payment goes to interest. Over time, the interest portion decreases and more of your payment reduces the principal.
Why does so much of my early payments go to interest?
Interest is calculated on the outstanding balance. At the start of the loan, your balance is at its highest, so the interest charge each month is larger. As you pay down the principal, the interest portion of each payment shrinks and more money goes toward reducing your balance. This is why making extra principal payments early can save significant interest over the life of the loan.
Can I use this calculator for a mortgage?
Yes. This calculator works for any fixed-rate loan, including mortgages, auto loans, personal loans, and student loans. Simply enter the loan amount, interest rate, and term in years. Keep in mind that actual mortgage payments may also include property taxes, insurance, and PMI, which are not included in this calculator.
What happens if my interest rate is 0%?
If your interest rate is 0%, your monthly payment is simply the loan amount divided by the total number of months. There is no interest charge, so 100% of every payment goes directly to paying off the principal. This is common with promotional financing offers from retailers and auto manufacturers.