Loan Calculator
Calculate your monthly payments, total interest, and view amortization schedule for any loan.
Loan Details
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Loan Summary
Enter loan details and click "Calculate" to see results.
How to Use This Calculator
- Enter your loan amount (the principal you're borrowing)
- Set the interest rate as an annual percentage
- Specify the loan term in years
- Choose your preferred payment frequency (monthly, bi-weekly, or weekly)
- Optionally add any extra payment you plan to make each period
- Click "Calculate" to see your payment details and amortization schedule
Related Tools
About Loan Calculations
How Loans Are Calculated
- Monthly payment uses the formula:
PMT = P[i(1+i)^n]/[(1+i)^n-1]where:- P = Principal (loan amount)
- i = Monthly interest rate
- n = Total number of payments
- Each payment is split between principal and interest
- Early in the loan, more of each payment goes to interest
- Later in the loan, more goes to principal
Tips for Saving Money
- Making extra payments can significantly reduce your total interest and loan term
- Even small additional payments can save thousands over the life of the loan
- Biweekly payments (26 payments/year) can help pay off loans faster
- Reducing the loan term (e.g., 15 years vs. 30 years) usually means a lower interest rate
- Shop around for the best interest rates before committing to a loan
Common Mortgage Loans
- Fixed-rate mortgages: Interest rate remains the same for the entire term
- Adjustable-rate mortgages (ARMs): Rate changes periodically after an initial fixed period
- Typical terms: 15, 20, or 30 years
- Down payment: Usually 3-20% of home value
Other Common Loans
- Auto loans: Typically 3-7 year terms with fixed rates
- Personal loans: Usually 1-7 year terms with fixed rates
- Student loans: Federal or private, often with longer repayment periods
- Home equity loans: Second mortgages using home equity as collateral
Frequently Asked Questions
How does the loan calculator work?
The loan calculator uses the standard amortization formula to calculate monthly payments based on the loan amount, interest rate, and loan term. It also generates a detailed amortization schedule showing how each payment is split between principal and interest over the life of the loan.
What information do I need to use the loan calculator?
You need three key pieces of information: the loan amount (principal), the annual interest rate (APR), and the loan term (length of the loan in years). With these inputs, the calculator can determine your monthly payment and total costs.
Can I use this calculator for different types of loans?
Yes, this calculator works for any type of installment loan including mortgages, auto loans, student loans, personal loans, and business loans. The calculation method is the same regardless of the loan type.
Does the calculator include taxes, insurance, or other fees?
No, this calculator shows only the principal and interest portion of your payment. For mortgages, you'll need to add property taxes, homeowners insurance, PMI, and HOA fees separately to get your total monthly housing payment.
What is an amortization schedule and why is it useful?
An amortization schedule shows how each monthly payment is divided between principal and interest over the entire loan term. Early payments go mostly toward interest, while later payments pay down more principal. This helps you understand the true cost of borrowing.
How can I reduce my total interest costs?
You can reduce interest costs by: making a larger down payment to reduce the principal, choosing a shorter loan term, securing a lower interest rate, or making extra principal payments. Use the calculator to compare different scenarios.
What's the difference between interest rate and APR?
Interest rate is the basic rate charged on your loan principal. APR (Annual Percentage Rate) includes the interest rate plus additional fees and costs. For the most accurate calculation, use the APR if you know it.
Can I calculate payments for adjustable-rate loans?
This calculator is designed for fixed-rate loans where the interest rate remains constant. For adjustable-rate mortgages (ARMs), the rate and payments will change over time, requiring more complex calculations.
How accurate are the calculator results?
The calculations are mathematically accurate based on the inputs provided. However, actual loan terms may vary slightly due to rounding practices, fees, or specific lender policies. Always confirm details with your lender.
What if I want to make extra payments toward principal?
Extra principal payments can significantly reduce the total interest paid and shorten the loan term. While this calculator shows the standard schedule, you can use the results to understand how extra payments would impact your loan.
Can I use this for refinancing decisions?
Yes, you can compare your current loan terms with potential refinance options by running calculations for both scenarios. Compare the monthly payments, total interest, and payoff dates to make an informed refinancing decision.
What loan term should I choose?
Shorter terms mean higher monthly payments but less total interest paid. Longer terms mean lower monthly payments but more total interest. Choose based on your budget, financial goals, and how long you plan to keep the loan.