Loan Calculator
Calculate your monthly loan payment, total interest, and total repayment amount for any personal or installment loan.
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Loan Summary
- Monthly Payment
- $311.06
- Total Interest Paid
- $1,198.24
- Total Cost of Loan
- $11,198.24
$10,000.00
Loan Amount
$1,198.24
Total Interest
$11,198.24
Total Cost
Principal vs. Interest
PrincipalInterest
Disclaimer: This calculator provides estimates for educational purposes. Actual loan terms will depend on your lender and creditworthiness.
How Loan Amortization Works
Every payment you make covers interest first, then reduces principal. In the early months most of your payment is interest. As the balance shrinks, more of each payment goes to principal. This is amortization.
Types of Loans
Personal loans, auto loans, student loans, home equity loans, and mortgages all use amortization. This calculator works for any fixed-rate installment loan.
Frequently Asked Questions
- Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is loan principal, r is monthly interest rate, and n is the total number of payments.
- The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees, giving a more complete cost picture.
- Yes. Extra principal payments directly reduce your loan balance, which reduces total interest paid and can shorten your loan term significantly.