Calculate your loan payments and create an amortization schedule.
$0.00
$0.00
$0.00
$0.00
Jan 2026
$0.00
0 months
0.00%
| Payment # | Payment Date | Payment Amount | Principal | Interest | Total Interest | Balance |
|---|
Our free loan calculator helps you determine your monthly loan payments, total interest paid, and complete amortization schedules for any loan. Whether you're planning for an auto loan, personal loan, or other financing, our calculator gives you the information you need to make informed borrowing decisions.
To get an accurate loan payment estimate, follow these steps:
For a standard amortized loan, the monthly payment is calculated using this formula:
M = P[r(1+r)^n]/[(1+r)^n-1]
Where:
For interest-only loans, the formula is simpler: M = P × r, where the monthly payment covers only the interest, with the principal due at the end of the loan term.
In an amortized loan, your monthly payment remains constant throughout the loan term, but the portion going toward principal gradually increases while the interest portion decreases. This is the most common type of loan for mortgages, auto loans, and personal loans. The Consumer Financial Protection Bureau explains amortization in more detail.
With an interest-only loan, your payments cover only the interest for a specific period, keeping your payments lower initially. However, the principal doesn't decrease during this period, and you'll either need to make a balloon payment at the end or refinance the loan. These loans are less common for consumers but may be used in specific circumstances. Investopedia provides more information about interest-only loans.
The loan term is the length of time you have to repay the loan. Common terms include:
A longer term means lower monthly payments but more interest paid over the life of the loan. A shorter term results in higher monthly payments but less total interest paid. NerdWallet offers guidance on choosing the right loan term for your situation.
The interest rate is the cost of borrowing the principal loan amount. However, Annual Percentage Rate (APR) includes both the interest rate and any additional fees, providing a more comprehensive measure of loan cost. When comparing loans, always look at the APR for a true apples-to-apples comparison. The CFPB explains the difference between interest rate and APR.
Making extra payments toward your loan principal can significantly reduce the total interest paid and help you pay off your loan earlier. Even small additional monthly payments can make a big difference over the life of the loan. Our calculator allows you to see exactly how much you can save with different extra payment scenarios. Bankrate offers strategies for paying off loans faster.
Personal loans are unsecured loans that can be used for almost any purpose, from debt consolidation to major purchases. They typically have fixed interest rates and terms ranging from 1-7 years. Interest rates vary widely based on your credit score, typically ranging from 6% to 36%. Experian provides a comprehensive overview of personal loans.
Auto loans are secured by the vehicle you're purchasing, which generally results in lower interest rates than unsecured loans. Terms typically range from 3-7 years, with longer terms becoming increasingly common. When calculating auto loans, don't forget to include sales tax and registration fees in your total loan amount. Edmunds offers a guide to auto financing.
Student loans have some unique characteristics, including deferment periods during school and various repayment plans. Federal student loans often offer income-driven repayment options and potential loan forgiveness, while private student loans typically have fixed repayment terms. Federal Student Aid provides detailed information on student loan types and terms.
Mortgages are long-term loans secured by real estate with terms typically ranging from 15-30 years. While not specifically designed for mortgage calculations, this loan calculator can give you a general idea of payment amounts and amortization schedules. For more detailed mortgage calculations, including taxes, insurance, and PMI, use our dedicated mortgage calculator.
A common guideline is that your total debt payments, including the new loan, should not exceed 36% of your gross monthly income. For example, if you earn $5,000 per month, your total debt payments (including housing, car loans, credit cards, and the new loan) should ideally stay below $1,800 per month. This ratio, known as the debt-to-income (DTI) ratio, is one factor lenders consider when approving loans. Credit Karma offers a DTI calculator to help determine your current ratio.
Loan interest rates vary based on several factors:
As of 2025, typical ranges are 3-10% for auto loans, 6-36% for personal loans, and 4-13% for private student loans, though these can change with market conditions. Bankrate regularly updates current average loan rates.
Your credit score significantly impacts both loan approval and the interest rate you qualify for. Generally, credit score impacts can be categorized as:
The difference between an excellent and fair credit score could mean paying thousands more in interest over the life of the loan. FICO's loan savings calculator demonstrates the impact of different credit scores on loan rates.
This decision involves weighing monthly payment amount against total interest costs:
Consider your budget, other financial goals, and financial security when making this decision. Our loan calculator allows you to compare different terms to find the right balance. Forbes Advisor compares the pros and cons of different loan terms.
Origination fees are upfront charges for processing a new loan, typically ranging from 1% to 8% of the loan amount. These fees can be paid out-of-pocket at closing or added to your loan balance. If added to the balance, you'll pay interest on the fee over the life of the loan, increasing your total cost. Our calculator's "Additional Fees" field allows you to include these costs in your calculations to see their impact. LendingTree explains how origination fees work for different loan types.
Most loans allow early payoff, but some may charge prepayment penalties. Check your loan agreement for any prepayment terms. Even with a penalty, paying off high-interest debt early can sometimes still save money. Our calculator's "Extra Payments" feature shows how making additional payments can reduce your loan term and total interest. The CFPB provides information about prepayment penalties.
Making biweekly payments (half your monthly payment every two weeks) results in 26 half-payments per year, equivalent to 13 full monthly payments instead of 12. This extra payment each year reduces your principal faster, shortening your loan term and reducing total interest. For a 30-year loan, this approach can typically save 4-5 years and thousands in interest. Our calculator's payment frequency option allows you to see the impact of different payment schedules. Bankrate examines the benefits of biweekly payment plans.
Refinancing may be beneficial if:
Consider refinancing costs, including potential origination fees and prepayment penalties on your existing loan. Use our calculator to compare your current loan with potential refinancing options to determine if the savings justify the costs. NerdWallet offers guidance on when refinancing makes sense.
Loan amortization refers to the process of gradually paying off a loan through regular payments, with each payment split between interest and principal reduction. Initially, more of each payment goes toward interest, but as the principal decreases, more goes toward the principal. The amortization schedule in our calculator shows this progression for every payment throughout your loan term. Investopedia provides a detailed explanation of how loan amortization works.